American oil and gas supermajor ExxonMobil Corporation has reported a 7.3% decline in its net profits during the first quarter of 2025, reaching $7.7 billion, compared to $8.2 billion in the same quarter of 2024.
ExxonMobil attributed the drop in net profits to the significant decline in industry refining margins, weaker crude prices, lower base volumes from strategic divestments and higher expenses from growth initiatives.
Also, increased oil and gas production volumes from the Permian and Guyana, additional structural cost savings and favorable timing effects have helped offset the decrease in net profits.
The supermajor generated strong cash flow from operations of $13.0 billion and free cash flow of $8.8 billion and distributed $9.1 billion to shareholders, which included $4.3 billion in dividends and $4.8 billion in share repurchases, consistent with the company’s annual $20 billion share-repurchase program through 2026.
Commenting on the first-quarter results, Chairman and Chief Executive of ExxonMobil, Darren Woods, said, “In this uncertain market, our shareholders can be confident in knowing that we are built for this. The work we have done to transform our company over the past eight years positions us to excel in any environment.”
He said that since 2019, the strategic choices they made to reduce costs, grow advantaged volumes, and optimize their operations have strengthened quarterly earnings power by about $4 billion at current prices and margins.
According to him, “This year, we’re starting up 10 advantaged projects that are expected to generate more than $3 billion in earnings in 2026 at constant prices and margins.”
He said the company will continuously leverage its competitive advantage to enable the company to excel in the current market environment and deliver on its plans through 2030 and far into the future.
Source: https://energynewsafrica.com
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