ExxonMobil and Chevron have reported declines in annual profits, underscoring the growing pressure that lower and more volatile oil prices are placing on the world’s largest energy companies.
The results reflect a marked shift from the record-breaking earnings seen in recent years, when elevated crude prices, tight global supply and strong post-pandemic demand drove extraordinary cash flows across the oil and gas sector. In 2025, however, softer crude prices, weaker refining margins and a more cautious global economic outlook combined to squeeze profitability.
Both companies cited lower upstream earnings as oil prices eased from prior highs, reducing revenue from crude production despite steady output. Refining operations also faced headwinds, as margins narrowed amid increased global capacity and fluctuating fuel demand in key markets such as the United States, Europe and Asia.
Chevron said its earnings were further affected by higher costs linked to major projects and ongoing investments aimed at sustaining long-term production. ExxonMobil, while highlighting operational resilience and continued capital discipline, acknowledged that market conditions had normalized compared with the exceptional environment of previous years.
Despite the profit declines, both firms maintained strong balance sheets and continued to prioritize shareholder returns through dividends and share buybacks, signaling confidence in their long-term strategies. Executives emphasized that disciplined spending, diversified portfolios and investments in lower-carbon technologies remain central to navigating cyclical downturns in the oil market.
Industry analysts note that the results illustrate how sensitive even the largest oil producers are to price movements, particularly as the global energy transition, geopolitical risks and demand uncertainty reshape long-term expectations for fossil fuel companies.
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