Exxon announces a decline in upstream profits for the fourth quarter

Exxon Mobil, the U.S. oil giant, said on Wednesday that lower crude?oil?prices may reduce its fourth-quarter?earnings? by $800 million to $1 billion.

The price of oil fell 9.2% in the three-month period ending December 31 as geopolitical risk was outweighed by concerns over supply and tariffs.

Brent crude futures lost?about 19% by 2025. This is the largest annual percentage decline since 2020, and the longest streak of losses ever recorded. U.S. West Texas Intermediate Crude logged an annual decline of nearly 20%.

In a regulatory filing, the company said that changes in gas price could impact its quarterly upstream earning from a negative 300 million dollars to as high as a $100 million dollar.

Exxon’s snapshot is closely monitored for?clues as to how the oil sector will do when companies release quarterly results in a few short weeks.

According to LSEG's data, analysts expect Exxon will report a?adjusted profit of $1.66 per diluted share for the fourth-quarter.

The filing stated that the company would?release its results for the last quarter of the year by January 30.

The third-quarter earnings of the energy giant were $5.7 billion. (Reporting and editing by Shilpa Majumdar in Bengaluru, Anil D'Silva and Shilpa Menon)

(source: Reuters)