Exxon Mobil (XOM.N) anticipates a decline in its first-quarter operating results.
The company said this will be due to weakened oil and gas prices, along with significant losses in fuel derivatives, as indicated by a securities filing on Wednesday.
The energy giant, headquartered in Spring, Texas, revealed in the filing that its upstream division is expected to suffer a setback of up to US$1 billion attributable to lower oil and gas prices.
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Additionally, earnings are projected to decrease by as much as US$1.3 billion, primarily due to “timing effects,” which encompass unsettled derivatives stemming from trading activities.
Despite potential gains from higher refining margins, Exxon stated that these gains are likely to be offset by an increase in scheduled maintenance. Despite this forecast, the company’s shares remained relatively stable in after-hours trading, showing only minor fluctuations, despite having experienced a notable 19% rise in value so far this year, according to Reuters.
Exxon’s disclosure marks it as the first among the oil majors to release earnings guidance for the first quarter. The company is expected to post full results for the period on April 26.
