ExxonMobil's upstream earnings surged 63% in the first quarter, but Middle East risk exposure pressured cash flow

Glonghui, May 2 | According to The Paper, the latest financial report released by oil giant ExxonMobil shows that in the first quarter, the company's operating revenue reached $85.14 billion, up 2.4% year-on-year; GAAP net profit was $4.18 billion, down 45.8% year-on-year; and adjusted earnings were $4.9 billion, exceeding market expectations. This is the company's first complete quarterly report since the outbreak of the Middle East conflict. The report shows that upstream business profit increased by 63% quarter-on-quarter, mainly benefiting from a 50% rise in Brent oil prices and increased production from key assets in the Permian Basin and Guyana. However, about 20% of ExxonMobil's oil and gas production comes from partners in the Middle East, giving it the highest exposure to Middle East risks among major oil companies. Due to supply disruptions, undelivered cargo losses, and mark-to-market losses on hedging transactions, its unadjusted profit dropped to its lowest level in five years, and free cash flow declined sharply.