Exxon Forecasts Q1 Upstream Profit Boost from Iran War, Temporary Downstream Hit
Summary
Exxon Mobil has provided Q1 guidance, forecasting an upstream profit increase of up to $2.9 billion, primarily driven by higher oil and gas prices stemming from the Iran war. While the company anticipates a temporary downstream earnings hit of approximately $5.3 billion in Q1 due to timing effects, this impact is expected to reverse and boost earnings in later quarters, with the CFO stating these will result in material net positive profit. Additionally, Exxon expects a 6% reduction in Q1 oil and gas production and an impairment of $600 million to $800 million from supply disruptions. This comprehensive guidance offers a more balanced view of the company's Q1 performance drivers, providing crucial context to previously reported negative impacts. Investors will closely monitor the full Q1 results on May 1 for further details and confirmation of these trends.
At the time of this announcement, XOM was trading at $154.68 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $683B. The 52-week trading range was $97.80 to $176.41. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Reuters.