ExxonMobil revises down Q2 earnings forecast due to refining challenges

(MENAFN) Exxon Mobil Corp. has revised down its second-quarter earnings forecast, citing expected declines in profits from its refining business amid industry-wide margin pressures. The company anticipates refining profits to range between USD1.1 billion and USD1.5 billion for the quarter, down from USD1.4 billion reported in the first quarter. This adjustment reflects broader challenges in the refining sector, where lower margins have impacted profitability across the industry.

Analysts, including Biraj Borkataria from RBC Capital Markets, noted that the reduced earnings from refining operations are likely to lead to Exxon Mobil's overall earnings per share falling short of market expectations. Despite forecasting total second-quarter earnings of USD8.3 billion, Exxon Mobil's outlook suggests caution amidst market dynamics. Historically, Exxon Mobil tends to set conservative forecasts, with actual results often surpassing initial estimates. Analysts had initially projected the company's second-quarter earnings to be around USD10 billion.

Exxon Mobil highlighted that gains from higher oil prices, totaling approximately USD700 million in the second quarter, are expected to be offset by losses resulting from lower natural gas prices. As the first major oil company to announce its second-quarter earnings outlook, Exxon Mobil's revised forecast underscores the ongoing volatility and challenges within the energy sector, influencing strategic decisions amid fluctuating market conditions.

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