ExxonMobil Q1 EPS Slumps to $1.16 with $4B Hedge Losses
ExxonMobil's Q1 adjusted EPS fell to $1.16 from $1.76 last year, underpinned by $4B in timing losses on oil hedges and a 6% production fall. CEO Woods cautioned that a closed Strait of Hormuz could delay supply normalisation by 1-2 months.
1. EPS Decline and Hedge Losses
ExxonMobil reported first-quarter adjusted earnings per share of $1.16, down from $1.76 a year earlier, driven by roughly $4 billion in mark-to-market losses on oil price hedges that cannot be offset until physical deliveries occur.
2. Production Volumes and Revenue Drivers
Global oil-equivalent production fell 6% to 4.6 million barrels per day due to scheduled maintenance and regional disruptions, while revenues increased to $85.1 billion, supported by record Guyana output of 900,000 barrels per day and strong refining margins.
3. CEO Warns on Strait of Hormuz Closure
CEO Darren Woods cautioned that if the Strait of Hormuz remains closed, negative impacts could continue for at least 1-2 months, delaying the renormalization of energy flows and potentially deepening market volatility.