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Exxon Mobil Corp.

ExxonMobil's First Quarter 2025 Financial Results Show Decline in Earnings

Strategic Insights

— 2 min read

During the first quarter of 2025, ExxonMobil's earnings declined due to a significant decline in industry refining margins, weaker crude prices, lower base volumes from divestments, and higher expenses driven by growth initiatives. However, the company benefited from increased volumes from advantaged Upstream investments in the Permian and Guyana, favorable timing effects from derivatives mark-to-market impacts, and Structural Cost Savings. The company's earnings were $7.7 billion, compared to $8.2 billion a year earlier.

Key Takeaways:

  • ExxonMobil's earnings declined to $7.7 billion in the first quarter of 2025, down from $8.2 billion in the first quarter of 2024.
  • The decline in earnings was mainly driven by a significant decline in industry refining margins, weaker crude prices, lower base volumes from divestments, and higher expenses driven by growth initiatives.
  • The company benefited from increased volumes from advantaged Upstream investments in the Permian and Guyana, favorable timing effects from derivatives mark-to-market impacts, and Structural Cost Savings.
  • Advantaged Volume Growth contributed to an increase in earnings by $920 million, driven by growing production in Permian and Guyana.
  • Structural Cost Savings increased earnings by $310 million.
  • Timing Effects, mainly from derivatives mark-to-market impacts, increased earnings by $280 million.
  • The company announced a variety of trade-related actions, including the imposition of tariffs on imports from several countries, which continues to create uncertainty in the global trade environment.
  • ExxonMobil's volumes reconciliation drivers include entitlements, which are changes to the company's share of production volumes caused by non-operational changes to volume-determining drivers.
  • The company's Energy Products segment experienced a decline in refining margins, driven by higher feed costs in North America, while chemicals margins remained at the bottom of the cycle.

Statistics:

  • ExxonMobil's earnings decreased by $450 million due to a decrease in liquids realizations, partly offset by an increase in natural gas realizations.
  • The company's Structural Cost Savings totaled $12.7 billion, with an additional $0.6 billion in the first three months of 2025.
  • ExxonMobil's Advantaged Volume Growth increased earnings by $920 million, driven by growing production in Permian and Guyana.
  • The company's Timing Effects, mainly from derivatives mark-to-market impacts, increased earnings by $280 million.
  • The global trade environment continues to be volatile, with the likelihood of the U.S. or its trading partners resuming tariffs, imposing new or reciprocal tariffs, export restrictions, or other forms of trade-related sanctions being highly uncertain.

Sources:

  • ExxonMobil's 2025 First Quarter Earnings Report
  • ExxonMobil's Corporate Website
  • COMTEX_465239447/2041/2025-05-05T12:43:33 (c) 1995-2025 Cybernet Data Systems, Inc. All Rights Reserved

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