ExxonMobil reported a 14.6 per cent decline in fourth-quarter 2025 profits, citing lower oil and gas prices that outweighed gains from higher production volumes. The US oil major announced a net profit of $6.5 billion for the quarter, down from $7.6 billion in the same period a year earlier, while revenue fell 1.3 per cent to $82.3 billion.
The profit reduction reflects broader market pressures, with the company noting that lower commodity prices were the primary driver of the year-over-year decrease. Additional factors included reduced chemical margins and costs associated with starting up new projects, which also impacted performance relative to the third quarter.
Despite the profit dip, ExxonMobil achieved record annual oil and natural gas production in 2025, reaching its highest volumes in four decades. The growth was driven by significant output increases in key assets, including the Stabroek Block offshore Guyana and the Permian Basin in the United States. The company also highlighted the successful completion of all 10 major capital projects planned for the year, underscoring its operational execution.
Returning capital to shareholders remained a priority. During the quarter, ExxonMobil distributed $9.5 billion through dividends and share repurchases, contributing to more than $37 billion in total shareholder returns for the full year.
Chief Executive Darren Woods expressed confidence in the company’s long-term trajectory, stating that ExxonMobil has “a long runway of profitable growth through 2030 and beyond.” This outlook is anchored in the ongoing development of low-cost, high-return assets, particularly in Guyana and the Permian Basin, which are central to the company’s production growth strategy.
Following the earnings release, ExxonMobil’s shares fell 1.8 per cent in pre-market trading, reflecting investor reaction to the quarterly profit miss amid price volatility.
The results illustrate the challenges major oil producers face when balancing production growth with volatile commodity markets. While ExxonMobil’s upstream volumes continue to expand, profitability in the near term remains susceptible to global energy price fluctuations. The company’s focus on disciplined capital allocation and project execution appears aimed at sustaining competitiveness and delivering shareholder value over the long term, even as it navigates cyclical market downturns.
