ExxonMobil: Iran War to Impact 6% of Firm's Global Output


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- ExxonMobil announced Wednesday (4/8) that it expects a 
6% drop in global production for the first quarter of this year as the conflict 
in the Middle East impacts output at the world's largest publicly-traded energy 
company.

   "The Middle East assets represent approximately 20% of our global 
oil-equivalent production, but a smaller percentage of upstream earnings," 
ExxonMobil said in a regulatory filing.

   It said certain assets in Qatar and the UAE, in which ExxonMobil held 
ownership interests, experienced production disruptions beginning in March, 
following the February start of U.S.-Israel airstrikes against Iran.

   "As a result, the company expects Middle East disruptions to lower global 
oil-equivalent production by approximately 6% in first quarter compared with 
fourth-quarter 2025," ExxonMobil said in the filing.

   Breaking down the impact on its production, ExxonMobil said damage to a 
liquefied natural gas complex in Qatar accounted for half of the reported 
outages. It said missile strikes impacted two LNG production trains that 
accounted for approximately 3% of its 2025 upstream production, and repairs 
will likely require a prolonged period to complete.

   Refining and trading segments are expected to see a combined earnings hit of 
up to $5.3 billion, ExxonMobil said, adding that "unusually large" negative 
timing impacts and inability to deliver physical shipments factored into the 
losses.

   The company expects to record an impairment of $600 million to $800 million 
as a result of failed deliveries alone.

   ExxonMobil is scheduled to release its full quarterly financial results on 
May 1.

   The Trump administration announced a two-week ceasefire Tuesday between the 
U.S., Israel, and Iran to negotiate an end to the monthlong conflict. The 
Strait of Hormuz, blockaded by Iran for most of the 40-day duration of the war, 
will be reopened, officials said, restoring passage for 20 million bpd of 
petroleum liquids.

    




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