economy
Exxon Mobil and Chevron earnings fall as Iran war disrupts oil shipments
Oil prices were depressed during the first two months of the year, but suddenly spiked after the U.S. and Israel attacked Iran on Feb. 28.
TL;DR
- Exxon Mobil's net income fell 45% and Chevron's tumbled 36% in the first quarter compared to last year.
- Both companies beat Wall Street's earnings estimates.
- Surging oil prices due to the Iran war caused the largest oil supply disruption in history.
- Exxon reported a $4 billion loss due to a 'timing effect' on financial hedges not offset by physical deliveries.
- Chevron, less exposed to the Middle East conflict, also booked a $2.9 billion charge related to financial hedges.
- Exxon's refiners reported a loss of $1.26 billion due to timing effects, while Chevron's refiners swung to a loss of $817 million.