XOM•XOM•Damage to two Qatari LNG trains cut about 3% of last year’s upstream output, contributing to a first-quarter net income decline to $4.2 billion, including $706 million in hedge losses. ExxonMobil beat adjusted EPS at $1.16, backed by Permian output, a dividend of $1.03 and a $20 billion buyback plan.
In the first quarter, fighting in the Strait of Hormuz damaged two of ExxonMobil’s Qatari LNG trains, representing roughly 3% of the company’s upstream production from last year. ExxonMobil estimates repairs could take up to five years to restore full capacity, creating a multi-year headwind for output.
The plant outages and regional unrest contributed to a net income drop to $4.2 billion, the lowest in five years, including $706 million in hedge-related losses and $3.9 billion in timing effects from derivatives. Despite these challenges, the company delivered adjusted earnings of $1.16 per share, beating the $1.01 forecast.
Strong growth in the Permian Basin, targeting 1.8 million barrels of oil equivalent per day this year, and record offshore volumes in Guyana above 900,000 gross barrels a day underpinned the earnings beat. ExxonMobil also announced a $20 billion share buyback authorization and raised its dividend to $1.03 per share to support shareholder returns.
A Justice Department inquiry into pump pricing practices adds regulatory risk, while the extended timeline for Qatari repairs suggests the upstream recovery will be gradual. Investors will monitor midyear output trends and asset restoration progress as key indicators for the stock’s performance.
