Exxon Mobil surpassed expectations for its first-quarter adjusted profit, although the unadjusted earnings hit a five-year low due to supply disruptions stemming from the conflict with Iran and hedging losses, as reported by Reuters.
Adjusted earnings for the initial three months of the year were reported at \$1.16 per share, exceeding the consensus forecast of \$1.00 compiled by LSEG.
The adjusted figure notably excluded \$700 million in losses attributed to cargo that could not be delivered, this being a consequence of the unprecedented disruption in the energy market initiated by the Middle East conflict starting late in February.
Excluding the impact of financial derivatives, which carried a near-term negative effect, the earnings reached \$2.09 per share. Net income for Q1 amounted to \$4.2 billion, a decline from \$7.7 billion recorded in the corresponding period of 2025, marking the lowest level since Q1 of 2021.
The American oil producer benefitted from elevated oil prices and increased output from its key assets in the Permian Basin and Guyana, which helped offset production interruptions in the Middle East.
Earnings from oil and gas production reached \$5.7 billion, representing a 63% increase quarter-over-quarter, yet a 15% decrease compared to the previous year.
Exxon’s free cash flow in the first quarter stood at \$2.7 billion, down from \$8.8 billion in the same period last year. The company distributed \$4.3 billion in dividends and executed \$4.9 billion in share buybacks during Q1.
Capital expenditure was \$6.2 billion, aligning with the firm’s full-year projection.
Exxon stated that should the Strait of Hormuz remain closed for the entirety of the second quarter, it would result in a reduction of Middle Eastern oil production by 750,000 barrels per day relative to last year’s levels.
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