Exxon Mobil Corp. (XOM.N) posted its poorest first-quarter profit in three years as weaker refining and chemical margins ate into earnings, casting doubt on the strength of the oil titan’s comeback from its annus horribilis in 2018, when it posted its worst annual stock performance in almost four decades.
-The oil major earned 55 cents a share, compared with an average estimate of 72 cents in a Bloomberg survey of analysts. Exxon’s refining unit lost US$256 million and its oil and gas wells underperformed.
Key Takeaways
-Wall Street expectations are growing for Exxon as the oil giant rebounds from a disastrous first half of 2018, during which oil and gas production reached the lowest in a decade: It’s the best performing major oil stock this year, up 21 per cent.
-Breaking with tradition, Exxon gave guidance on metrics such as refining and chemical margins on April 10, meaning early trading may be less volatile than in the last three quarters, when results came in at least 20 per cent above or below estimates.
-Executives on the analyst call will likely be asked about any acquisition plans for the Permian Basin, where rivals Chevron Corp. and Occidental Petroleum Corp. are competing to buy Anadarko Petroleum Corp.
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