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.

Share:

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.

Enbridge confirms dividend payments for its common and preferred shares, consolidating its shareholder return policy amid stability in the North American energy sector.
Cox aims to acquire Iberdrola’s 15 power plants in Mexico for EUR4 bn (USD4.69 bn), strengthening its presence in a changing market.
Guzman Energy has finalised a $80mn revolving credit facility with BciCapital to strengthen its liquidity and support its growth in the Western U.S. energy markets.
Chevron announces the appointment of John B. Hess, former executive of Hess Corporation, to its board of directors, marking a strategic step for the group’s governance in a context of transformation in the energy sector.
Nexans reports a 113% increase in net profit for the first half, supported by the growth of its electrification activities and the upward revision of its financial targets for the year.
The European Commission opens an in-depth investigation into Adnoc’s purchase of German chemical group Covestro, questioning the potential impact of foreign subsidies and competition within the European internal market.
Stonepeak announces the creation of JouleTerra, a platform dedicated to the aggregation and management of grid-connected land, aimed at supporting the deployment of renewable energy infrastructure throughout the European continent.
Baker Hughes is set to acquire Chart Industries for $13.6bn, surpassing Flowserve’s offer and ending the previously announced merger between Chart and Flowserve, according to sources close to the matter.
Spanish energy group Endesa reports strong first-half profit growth but warns of insufficient incentives in the new grid remuneration framework proposed by the CNMC.
The French group posted higher sales and profitability while setting a new record for its investment backlog, driven by the electronics and energy transition sectors.
Bureau Veritas completes acquisitions in cybersecurity in Denmark, nuclear in Germany, and transition services in South Korea, further strengthening its coverage of strategic high-growth markets.
Macquarie finalises the acquisition of Erova Energy, further strengthening its capabilities in the management and optimisation of renewable assets in the United Kingdom and Ireland amid rapid sector growth.
An agreement between Iberdrola and Echelon provides for the creation of a joint venture dedicated to the development of data centres in Spain, including an initial 144 MW site in Madrid, strengthening integration between energy and digital infrastructure.
TenneT strengthened its investments in electricity infrastructure in the Netherlands and Germany, reaching EUR 5.5 bn over six months, while a decision on the financing structure of its German subsidiary is expected in September 2025.
Eni is considering increasing its share buyback programme after financial results exceeded expectations, with reduced debt and revised annual targets in the gas segment.
Despite a sharp decline in sales and prices, Vallourec improved its profitability and issued an upward forecast for its gross operating income in the second half of 2025.
Eni announces a sharp decline in quarterly net profit, the result of lower oil prices and a weaker dollar, while maintaining a strengthened dividend policy and a development trajectory in renewables.
EDF is reassessing its industrial priorities and streamlining investments, as net profit falls to €5.47bn ($5.94bn) in the first half of 2025 due to a weakening electricity market.
Energy group Edison posts increased sales and investments despite a less favourable market environment, advancing its renewables development and strengthening its positions in Italy.
SEGULA Technologies opens an office in Cape Town, strengthening its presence in the African market and targeting expansion in energy, rail, and automotive sectors, in partnership with South African industrial firm AllWeld.