Exxonmobil expects a $1.5 billion hit in second quarter revenues from declining oil and gas prices
ExxonMobil forecasts a $1.5 billion cut in revenue for the second quarter (Q2) by revenue of 2025. Bloomberg.
The energy giant showed that oil prices had a negative impact on revenue, increasing losses by $500 million compared to the first quarter.
The industry’s outlook appears to be under control, as suggested by revenue guidance from ExxonMobil and its European counterpartshell.
The companies suggest a challenging quarter, characterized by their difficulties in generating enough free cash flow to maintain their increased dividends following record revenues in 2022 and maintaining a stock buyback.
Trade tensions incited by US President Donald Trump and unexpected supply hikes from OPEC (an organization of oil exporters) and its allies have put downward pressure on crude oil prices. Meanwhile, geopolitical tensions, including US and Israel’s actions against Iran, provide only short-lived price support.
Despite these challenges, Exxonmobil expects some easing from the refinement of margins, which is expected to increase revenue by $300 million.
The company revealed that the guidance provided only reflects market pricing and does not take into account operational performance variables such as production changes and cost fluctuations.
Commenting on the guidance, Viradivolcatalia, an analyst at Global Investment Bank RBC Capital Markets, said it was “lined” with what analysts predicted in the second quarter of ExxonMobil. He said Exxonmobil’s trading operations were much smaller than Shell’s trading operations, and protected it from some of the issues affecting its European peers.
Exxonmobil announced on August 1st that it will disclose its results for its final quarter. Wall Street analysts expect to report adjusted earnings of $1.53 per share for the second quarter, according to estimates from the London Stock Exchange Group. Reuters.
In the first quarter, Exxonmobil reported upstream revenue of $6.8 billion, bringing gross profit to $7.71 billion.
June 2025, the Republic of Azerbaijan State Oil Company (SOCAR) Signed a new agreement with Exxon Mobil Domestic oil and gas exploration BP.
“ExxonMobil expects a $1.5 billion hit in second quarter revenues from low oil prices,” was originally created and published. Offshore Technologya brand owned by GlobalData.
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