en.Wedoany.com Reported - U.S. oil and gas giant Exxon Mobil Corporation (NYSE:XOM) released its second-quarter earnings guidance on July 7, 2026, indicating that driven by a significant surge in international oil prices, the company's quarterly earnings are expected to jump by nearly $4 billion compared to the first quarter. The company will officially release its full financial report on July 31.
Headquartered in Spring, Texas, ExxonMobil is one of the largest publicly traded oil companies in the world. In its guidance, the company stated that the surge in the crude oil market contributed a $3.7 billion profit increase, while refining and chemical operations added an additional $3.3 billion in earnings. According to the consensus analyst estimate compiled by LSEG, ExxonMobil's adjusted earnings for the quarter are expected to reach $15.7 billion, approximately three times that of the first quarter.
By business segment, the upstream operations benefited the most. The company expects upstream earnings to increase by $3.5 billion to $3.9 billion in the second quarter. Based on the upper end of the guidance, second-quarter upstream earnings would reach $9.6 billion, the highest level since September 2022. The benchmark Brent crude oil averaged $93.58 per barrel from April to June, up 4.8% from the previous quarter; in April, Brent crude briefly climbed to $109.27 per barrel, the first time since 2022.
In the refining business, the company expects second-quarter refining margins to contribute approximately $2.2 billion in earnings growth, while chemical margins contribute about $1.1 billion. The company also noted that derivative positions related to physical commodity deliveries are expected to generate approximately $2.6 billion in profits. ExxonMobil suffered billions of dollars in losses from financial hedging in the first quarter, and the company stated at the time that these positions would be gradually unwound and converted into profits in subsequent quarters.
However, these positive factors were partially offset by approximately $1.2 billion in losses caused by production disruptions in the Middle East. Since the outbreak of the U.S.-Iran conflict at the end of February, shipping through the Strait of Hormuz, which carries about one-fifth of the world's oil shipments, has been disrupted. The company estimates that war-related business interruptions will result in approximately $1 billion in profit losses across both upstream and downstream sectors.
ExxonMobil is the second oil giant, after Shell, to release quarterly earnings guidance. Analysts expect Chevron's second-quarter net profit to also approach $10 billion, more than triple that of the first quarter. However, international oil prices have fallen about 40% since hitting a high of $125 per barrel at the end of April. U.S. President Donald Trump has publicly pressured oil companies to take more measures to lower fuel prices. The company's stock price rose about 4% on the day.
