Profit for the Biggest US Oil Companies Declined in the First Quarter, but only on Paper
Hedge accounting losses masked strong adjusted earnings as Strait of Hormuz disruptions delayed oil deliveries, analysts said.
- Exxon Mobil and Chevron reported first-quarter results on Friday, with adjusted profits for both companies topping Wall Street expectations despite lower reported earnings.
- Financial hedges backfired following U.S. and Israel attacks on Iran in late February, causing profits to tumble as closure of the Strait of Hormuz blocked physical oil delivery.
- Exxon earned $4.18 billion on $85.14 billion in Revenue, while Chevron reported $2.21 billion Profit with $48.61 billion Revenue; both cited "unfavorable estimated timing effects" from hedges.
- Inflation rose sharply last month during the largest monthly jump in gas prices in six decades, according to Department of Labor data, while average gasoline hit $4.39 on Friday per AAA.
- About 20% of the world's oil passes through the Strait of Hormuz, and Airlines worldwide have begun canceling flights as the Middle East war strains jet fuel supplies.
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24 Articles
Associated Press News
Profit for the biggest US oil companies declined in the first quarter, but only on paper
Profit for the two largest oil companies in the U.S. tumbled during the first quarter, a three-month period in which the price of crude and gasoline rocketed higher.
The profits of the two largest oil companies in the United States plummeted in the first quarter of the year, a period in which the price of crude oil and gasoline skyrocketed. However, this is just a setback on paper, a result of financial coverage that went wrong when the United States and Israel attacked Iran in late February.
Chevron had a net profit of US$2.21 billion in the first quarter of 2026, a decrease of 37% compared to the gain calculated in the same period last year, according to the balance reported on Friday (1st). With adjustments, the second largest US oil company recorded profit per share of US$1.41 between January and March, well above the projection of analysts consulted by FactSet, of US$0.98. Read More Apple Actions jump with positive results in th…
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