ExxonMobil CFO Kathryn Mikells is keeping a close eye on the “pretty troubling” geopolitical events in the Middle East and Russia as the company navigates through first-quarter profits that fell short of Wall Street expectations.
Despite the escalating tensions in the region, including clashes between Israel and Iran, Exxon’s operations have not been disrupted. Mikells emphasized the importance of ensuring the safety of their employees while monitoring potential threats.
The surge in oil and natural gas prices following Russia’s invasion of Ukraine in 2022 boosted Exxon’s profits, allowing the company to report record earnings. Although prices have since stabilized, Exxon’s shares have seen a significant increase, reaching a record high above $123 per share.
In the first quarter, Exxon reported a net profit of $8.2 billion, a 28% decrease from the previous year due to lower gas prices and oil refining margins. The earnings per share of $2.06 fell short of consensus expectations, with Mikells attributing the miss to non-cash items and divestments.
The company is currently embroiled in an arbitration dispute with Chevron over the control of Hess’s assets in Guyana. Chevron’s proposed acquisition of Hess for $53 billion would give it a stake in the lucrative Stabroek Block, a major offshore oil discovery. Exxon, which owns 45% of the block, believes it has the right to preempt the deal.
Mikells reiterated Exxon’s commitment to protecting its interests in Guyana and ensuring the value associated with the transaction. Despite the challenges, Exxon remains focused on its business operations and maintaining strong cash flow.