(Bloomberg) — Exxon Mobil Corp.’s first-quarter earnings will likely be lower than in the prior three-month period due to falling oil and gas prices as well as a drop in profit from mark-to-market derivatives.
Most Read from Bloomberg
Exxon’s upstream division will take a hit of as much as $1 billion from lower oil and gas prices, the Spring, Texas-based company said in a filing Wednesday. Additionally, earnings will fall by as much as $1.3 billion due to “timing effects,” which include unsettled derivatives from trading.
Gains from higher refining margins will likely be wiped out by an increase in scheduled maintenance, the company said. The shares were little changed in after-hours trading, having risen 19% this year.
Exxon is the first of the oil majors to publish earnings guidance for the first quarter. The expected drop in profit may signal a tougher earnings season ahead than the prior period, when four of the five supermajors comfortably beat analysts’ expectations despite lower commodity prices.
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.