Oil Giants Report Lower Q1 Profits Amid Slump in Crude Prices
By SpringNewsNG Media Limited | May 5, 2025
Energy heavyweights including ExxonMobil, Shell, Chevron, and BP reported a decline in net income compared to the same period last year, citing weaker global oil prices and softer demand growth.
Brent crude averaged around $68 per barrel in Q1 2025, down from over $82 during the same quarter in 2024, while U.S. benchmark West Texas Intermediate (WTI) followed a similar downward trend. This decline, driven by rising inventories and uncertainty over global economic growth, slashed profit margins for upstream operations.
ExxonMobil reported a 28% drop in quarterly profit, while Shell and Chevron each saw declines of more than 20%. BP’s earnings also fell short of expectations, with analysts pointing to the company’s exposure to refining margin pressures and currency headwinds.
Executives from several firms warned of continued market headwinds due to oversupply concerns and uneven global demand recovery, particularly in key Asian markets. Some companies signaled plans to rein in capital expenditure and focus more on shareholder returns amid a tougher pricing environment.
Despite the decline, most oil majors remained profitable and emphasized their financial resilience, supported by diversified operations, cost controls, and strategic hedging.
Analysts expect that unless oil prices rebound sharply or OPEC+ implements new output cuts, energy companies may continue to face pressure in the quarters ahead.
