Exxon profits surge; $3.4 billion hit from Russian exit

This April 28, 2021 photo shows an Exxon service station sign in Philadelphia. Exxon Mobil reported $5.48 billion in profits during the first quarter, Friday, April 29, 2022, as oil and gas prices rose steadily, more than doubling its profits compared to the same quarter last year. (AP Photo/Matt Rourke, File)

NEW YORK (AP) — Exxon Mobil reported $5.48 billion in net income during the first quarter as oil and gas prices rose steadily, more than doubling its profits compared with the same quarter last year.

But the oil giant took a huge hit as it abandoned its Russian operations due to the war, writing down $3.4 billion.

Including that loss, the oil giant reported profits of $1.28 per share Friday, which was well below expectations of analysts polled by Factset, who were looking for $2.23 per share.

Revenue at the Irving, Texas company was $90.5 billion, which far exceeded the $59.15 in revenue during the same quarter a year ago.

The price of oil climbed steadily during the first quarter after Russia invaded Ukraine, sending European countries which rely heavily on Russia for energy and others scrambling to find alternative sources for fuel. A barrel of the U.S. benchmark crude rose from $76 to nearly $130 per barrel before ending the quarter at $100, and drivers were filling up with increasingly expensive gasoline.

Natural gas prices rose too, climbing from $3.50 per million British thermal units to about $5.60, inflating home heating bills and electricity prices.

Exxon’s production fell to 3.7 million barrels per day of oil-equivalent, down from 4% from the fourth quarter of 2021 due to weather-related unscheduled downtime, planned maintenance and divestments, the company said.

After dipping in trading before the opening bell, shares of Exxon Mobil Corp were essentially flat.

Also on Friday, Chevron reported a quarterly profit $6.26 billion, more than four times its earnings in the same period last year. On a per-share basis, profits from the San Ramon, California energy producer were a nickel short of Wall Street expectations, according to a survey by Factset, but Chevron does not adjust its reported results based on one-time events such as asset sales. And revenue surged 41% to $54.37 billion, exceeding industry analyst projections by a whopping $7 billion.