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ExxonMobil reports 6% drop in quarterly profit despite increased synergies

Falling refining margins and weaker oil prices weighed on ExxonMobil’s Q1 results, while the group now expects $3bn in annual synergies from its acquisition of Pioneer.

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Energy group ExxonMobil Corporation reported a net profit of $7.71bn for the first quarter of 2025, marking a 6.17% decline compared to the same period last year. Revenue held steady at $83.13bn, slightly below analysts’ expectations of $86.35bn, according to FactSet data.

Management attributed the performance to a “significant decline” in refining margins and ongoing “weakness” in oil prices, amid a market context described as “uncertain.” Net earnings per share excluding exceptional items came in at $1.76, in line with the market consensus of $1.75.

Margins under pressure amid market uncertainty

In a conference call with financial analysts, ExxonMobil Chairman and Chief Executive Officer Darren Woods highlighted the market volatility tied to new tariffs introduced by the Trump administration. He noted that the uncertainty was weighing on global economic forecasts and maintaining downward pressure on crude prices.

Woods added, however, that the company had observed “no problem or material impact” so far and did not anticipate a significant effect from the tariffs on the group’s future performance.

Production increase and cost reductions

At the same time, the group benefited from increased production volumes, particularly in the Permian Basin in the United States and offshore Guyana. Structural cost reductions and favourable calendar effects also helped mitigate negative profitability impacts.

Nevertheless, ExxonMobil faced above-average spending linked to growth projects, as well as financial consequences from certain asset disposals carried out during the period.

Increased synergies from Pioneer

Referring to the acquisition of Pioneer Natural Resources, completed at the end of 2023, ExxonMobil raised its expected annual synergies over the next decade to $3bn, up from the previous $2bn forecast. “That figure could be even higher,” said Darren Woods.

Outlook for the second quarter appears more positive, supported by seasonal demand that could help sustain refining margins. As of the partial close on May 2, ExxonMobil shares were up 0.22% on the New York Stock Exchange.

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