Exxon Mobil Corp.’s first-quarter earnings will possible be decrease than within the prior three-month interval because of falling oil and fuel costs in addition to a drop in revenue from mark-to-market derivatives.
Exxon’s upstream division will take successful of as a lot as $1 billion from decrease oil and fuel costs, the Spring, Texas-based firm mentioned in a submitting Wednesday. Moreover, earnings will fall by as a lot as $1.3 billion because of “timing results,” which embrace unsettled derivatives from buying and selling.
Positive factors from larger refining margins will possible be worn out by a rise in scheduled upkeep, the corporate mentioned. The shares had been little modified in after-hours buying and selling, having risen 19% this yr.
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Exxon is the primary of the oil majors to publish earnings steerage for the primary quarter. The anticipated drop in revenue might sign a more durable earnings season forward than the prior interval, when 4 of the 5 supermajors comfortably beat analysts’ expectations regardless of decrease commodity costs.
