New york: The American energy giant ExxonMobil stated that the majority of its losses for the first quarter of 2026 are due to an inopportune timing in the recording of hedging contracts, emphasizing that these effects will diminish once the underlying transactions are completed.
According to Yemen News Agency, the company explained that global oil and gas production will be 6% lower in the first quarter compared to the last quarter of 2025, as a result of attacks on facilities in Qatar and the UAE in which it holds stakes. It estimated that the disruption to production and refining will cost it between $400 million and $800 million.
Exxon also indicated that trading losses due to the inability to deliver physical shipments hedged with financial contracts will range between $600 million and $800 million. The company has one of the largest exposures among Western oil companies in the Middle East, representing approximately 20% of its oil and gas production. Its assets include stakes in liquefied natural gas projects with Qatar Energy, which were damaged in the attacks.
Exxon's Chief Financial Officer, Neil Hansen, said the accounting losses were related to higher oil and gas prices, asserting that the contracts would generate significant profits later. He added that the price increase since the outbreak of the war on February 28 would add between $2.1 billion and $2.9 billion to first-quarter profits.