BAKU, Azerbaijan, April 30. ExxonMobil's energy products earnings in 1Q2024 amounted to $1.4 billion, Trend reports.
According to the company's latest financial statement, this marked a $2.8 billion decrease from the same period last year.
This downturn was primarily attributed to weaker industry refining margins and adverse timing effects, particularly stemming from derivatives mark-to-market impacts, the producer explains.
However, earnings saw improvements from the advantaged Beaumont refinery expansion project and structural cost savings, which partially offset the impact of lower base volumes due to divestments and increased scheduled maintenance expenses. Notably, strong turnaround performance contributed to reduced labor costs and minimized facility downtime, aiding in mitigating expenses related to scheduled maintenance.
Compared to 4Q2023, energy products earnings decreased by $1.8 billion, driven by timing effects, lower base volumes, and heightened expenses from scheduled maintenance. Additionally, earnings were impacted by other predominantly non-cash effects from tax and inventory adjustments. However, as Exxon noted, improved industry refining margins provided some relief. The absence of specified items from the fourth quarter further decreased earnings by $189 million.
Meanwhile, ExxonMobil's overall earnings (excluding identified items) in 1Q2024 amounted to $8.2 billion, or $2.06 per share assuming dilution. This marked a decrease of 29 percent from $11.6 billion recorded in the same period of 2023.