Why did Exxon's unadjusted profit fall to its lowest level in five years despite beating earnings estimates?

Exxon's unadjusted profit dropped to $4.2 billion — its lowest first-quarter level since 2021 — primarily due to a $700 million loss from undeliverable cargoes caused by unprecedented supply disruptions from the Iran war, which also led to production declines, especially in the Middle East; this loss was excluded from the adjusted earnings figure of $1.16 per share that beat estimates.

How is the Strait of Hormuz disruption affecting Exxon's second-quarter production outlook?

Exxon stated that if the Strait of Hormuz remains closed for the rest of the second quarter, its worldwide production would fall to between 4.1 million and 4.3 million barrels of oil equivalent per day — down from 4.59 million bpd in Q1 — with Middle East output dropping to 750,000 bpd; however, if the strait reopens immediately, production could reach up to 4.7 million bpd.

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