ExxonMobil's first quarter of 2025 saw a decline in earnings to $7.7 billion compared to $8.2 billion in the same period in 2024. This decrease was primarily attributed to a significant drop in industry refining margins, weaker crude prices, lower base volumes from divestments, and higher expenses due to growth initiatives. However, this was partially offset by increased volumes from advantaged Upstream investments in the Permian and Guyana, favorable timing effects from derivatives mark-to-market impacts, and Structural Cost Savings.
In the Upstream segment, earnings (loss) excluding Identified Items (Non-GAAP) for the first quarter of 2025 were $6.8 billion, compared to $5.7 billion in the same period in 2024. Advantaged Volume Growth contributed significantly to the increase in earnings, with higher volumes from advantaged assets increasing earnings by $920 million, driven by growing production in Permian, including the Pioneer acquisition, and Guyana. However, base volumes from divestments decreased earnings by $180 million.
In the Energy Products segment, earnings (loss) excluding Identified Items (Non-GAAP) for the first quarter of 2025 were $827 million, a decline from $1.4 billion in the same period in 2024. The decrease was mainly driven by a drop in industry refining margins, which decreased earnings by $1.29 billion, normalizing from historically high levels.
ExxonMobil's total cash capital expenditures for the first quarter of 2025 were $5.9 billion, up $0.7 billion from the first quarter of 2024.
The company reported that the global trade environment continues to be volatile due to the U.S. announcing various trade-related actions, including the imposition of tariffs on imports from several countries, which has led to retaliatory tariffs from other countries. This uncertainty poses potential impacts on the corporation, its suppliers, customers, and the overall macroeconomic environment.
ExxonMobil also provided an overview of its Structural Cost Savings, which are expected to be sustainable compared to 2019 levels. Estimated cumulative Structural Cost Savings totaled $12.7 billion by the end of the first quarter of 2025, including an additional $0.6 billion in savings during that quarter.
As a result of these announcements, the company's shares have moved -2.7% on the market, and are now trading at a price of $103.3. For more information, read the company's full 10-Q submission here.
