ExxonMobil, one of the leading energy giants, recently announced a forecasted reduction of $1.5 billion in its second-quarter (Q2) earnings for 2025. This decrease is attributed to lower oil and gas prices impacting the company’s financial performance. According to a report by Bloomberg, ExxonMobil highlighted that oil prices alone have negatively affected earnings by $1 billion, with an additional $500 million loss from gas compared to the previous quarter.
The overall industry outlook appears subdued, with both ExxonMobil and its European counterpart Shell hinting at a challenging quarter ahead. The difficulties in generating sufficient free cash flow to sustain dividends and share repurchases, which were increased following record earnings in 2022, have been a point of concern for both companies.
Various factors have contributed to the downward pressure on oil prices, including trade tensions incited by US President Donald Trump and unexpected supply hikes from OPEC and its allies. Geopolitical tensions, such as actions against Iran by the US and Israel, have only provided short-lived price support.
Despite these challenges, ExxonMobil anticipates some relief from refining margins, which are expected to bolster earnings by $300 million. However, the company clarified that the provided guidance solely reflects market pricing and does not account for operational performance variables like production changes or cost fluctuations.
RBC Capital Markets analyst Biraj Borkhataria commented on the guidance, stating that it aligns with analysts’ predictions for ExxonMobil’s second quarter. He noted that ExxonMobil’s trading operations are smaller than Shell’s, which has shielded it from some of the issues impacting its European peer.
ExxonMobil is set to disclose its finalized quarterly results on August 1st. Wall Street analysts, as per estimates from the London Stock Exchange Group, are expecting the company to report adjusted earnings of $1.53 per share for the second quarter, as reported by Reuters. In the first quarter, ExxonMobil reported upstream earnings of $6.8 billion, contributing to a total profit of $7.71 billion.
In June 2025, the State Oil Company of the Azerbaijan Republic (SOCAR) signed new agreements with Exxon Mobil and BP for oil and gas exploration in the country. The collaboration aims to leverage the expertise of these companies in the exploration and extraction of valuable energy resources in Azerbaijan.
The original article, “ExxonMobil expects $1.5bn hit to Q2 earnings from lower oil and gas prices,” was initially published by Offshore Technology, a GlobalData-owned brand. Disclaimer: The information provided in this article is for general informational purposes only and should not be considered as professional advice. It is recommended to seek expert advice before making any financial decisions based on the content presented here.
