{"id":4761,"date":"2026-05-09T15:16:44","date_gmt":"2026-05-09T15:16:44","guid":{"rendered":"https:\/\/tradertideinsights.com\/?p=4761"},"modified":"2026-05-09T15:16:44","modified_gmt":"2026-05-09T15:16:44","slug":"oil-majors-post-mixed-q1-as-iran-war-distorts-profits-product-flows","status":"publish","type":"post","link":"https:\/\/tradertideinsights.com\/?p=4761","title":{"rendered":"Oil majors post mixed Q1 as Iran war distorts profits, product flows"},"content":{"rendered":"<div><\/div>\n<p>The world\u2019s biggest oil companies delivered a turbulent set of first\u2011quarter earnings, underscoring how the war in Iran and the closure of the Strait of Hormuz have distorted both profits and physical flows.&nbsp;<\/p>\n<p>While Shell and BP beat expectations on the back of strong trading and higher prices, ExxonMobil and Chevron reported headline profit declines, blaming \u201cpaper losses\u201d from hedging mismatches.&nbsp;&nbsp;<\/p>\n<h2 class=\"wp-block-heading\">ExxonMobil and Chevron: Profits hit by timing effects&nbsp;&nbsp;<\/h2>\n<p><a href=\"https:\/\/invezz.com\/news\/2026\/05\/06\/exxon-gets-180-target-despite-outages-ai-push-fuels-optimism\/\">ExxonMobil<\/a> reported net income of $4.2 billion, down sharply from $7.7 billion a year earlier. <\/p>\n<p>Adjusted earnings, however, came in at $8.8 billion, beating Wall Street forecasts. Revenue rose to $85.1 billion, reflecting higher crude prices.\u00a0<\/p>\n<p>Chief executive Darren Woods said about 15% of Exxon\u2019s production was disrupted by the war, with 750,000 barrels per day at risk if Hormuz remained closed. <\/p>\n<p>Hedging losses of nearly $4 billion weighed on reported results, creating what he called a \u201ctiming effect.\u201d\u00a0\u00a0<\/p>\n<p>\u201cThese are timing effects. The physical barrels will catch up, but the accounting impact is immediate.\u201d<\/p>\n<p>Chevron posted net income of $2.2 billion, compared with $3.5 billion last year. <\/p>\n<p>Adjusted earnings of $1.41 per share beat consensus estimates, though revenue slipped to $48.6 billion.\u00a0<\/p>\n<p>CEO Mike Wirth stressed Chevron\u2019s lower exposure to Middle East operations, but acknowledged that hedging mismatches and deferred deliveries had distorted the quarter.&nbsp;&nbsp;<\/p>\n<p>\u201cOur exposure to Middle East operations is limited, but the volatility in futures markets and deferred deliveries distorted reported earnings,\u201d Wirth added.&nbsp;<\/p>\n<h2 class=\"wp-block-heading\">Shell: strong beat, buyback trimmed&nbsp;&nbsp;<\/h2>\n<p>Shell stood out with <a href=\"https:\/\/invezz.com\/news\/2026\/05\/07\/shell-earnings-surge-in-q1-announces-3b-buyback-as-dividend-rises-5\/\">adjusted earnings of $6.92 billion<\/a>, comfortably above analyst expectations of $6.36 billion. <\/p>\n<p>CEO Wael Sawan credited \u201crelentless operational performance\u201d despite unprecedented disruption.\u00a0<\/p>\n<p>The company announced a $3 billion buyback program\u2014slightly reduced from previous quarters\u2014and a 5% dividend hike. <\/p>\n<p>Net debt rose to $52.6 billion, reflecting higher working capital needs as oil prices surged. <\/p>\n<p>Shell also confirmed its $16.4 billion acquisition of ARC Resources, expected to add 370,000 barrels of oil equivalent per day and support long\u2011term growth.\u00a0\u00a0<\/p>\n<div id=\"quotation-block_5994c9cb1f10db2a684ebfe0b9a54344\" class=\"quotation\">\n<blockquote style=\"margin: 0;padding-left: 1rem;border-left: 4px solid #ccc\">\n<p style=\"margin: 0 0 0.75rem 0;font-size: 1.125rem;line-height: 1.6\"> Relentless operational performance allowed us to deliver strong results despite unprecedented disruption in global energy flows. <\/p>\n<footer style=\"font-size: 0.9375rem;color: #555\"><cite style=\"font-style: normal;font-weight: 600\">Wael Sawan<\/cite><br \/><span>Chief Executive Officer at Shell<\/span><\/footer>\n<\/blockquote>\n<\/div>\n<h2 class=\"wp-block-heading\">BP: Trading gains offset volatility&nbsp;&nbsp;<\/h2>\n<p>BP reported underlying replacement cost profit of $3.2 billion, more than double the prior quarter, with reported profit at $3.8 billion.&nbsp;<\/p>\n<p>Strong oil trading and refining margins drove results, though net debt climbed to $25.3 billion due to a working capital build. <\/p>\n<p>CEO Meg O\u2019Neill emphasised BP\u2019s resilience and reiterated capex guidance of $13\u201313.5 billion for 2026, alongside a commitment to annual dividend growth of at least 4%.\u00a0<\/p>\n<div id=\"quotation-block_029b995f3e4102048c28e3eecefa0435\" class=\"quotation\">\n<blockquote style=\"margin: 0;padding-left: 1rem;border-left: 4px solid #ccc\">\n<p style=\"margin: 0 0 0.75rem 0;font-size: 1.125rem;line-height: 1.6\"> Trading strength and refining margins offset volatility. Our balance sheet remains resilient even as working capital demands increased. <\/p>\n<footer style=\"font-size: 0.9375rem;color: #555\"><cite style=\"font-style: normal;font-weight: 600\">Meg O&#039;Neill<\/cite><br \/><span>Chief Executive Officer at BP<\/span><\/footer>\n<\/blockquote>\n<\/div>\n<p>Analysts noted BP benefited from longer shipping routes and inventory swings caused by Hormuz disruptions, which boosted trading margins but strained cash flow.&nbsp;&nbsp;<\/p>\n<h2 class=\"wp-block-heading\">Conflict impact: futures vs physical barrels\u00a0\u00a0<\/h2>\n<p>Across the majors, the Middle East war defined Q1 performance. <\/p>\n<p>Futures markets priced in peace hopes quickly, sending oil benchmarks lower, but physical flows remained constrained.\u00a0<\/p>\n<p>Rystad Energy estimated that even under a phased reopening of Hormuz, meaningful volume recovery would <a href=\"https:\/\/invezz.com\/news\/2026\/05\/07\/us-iran-deal-unlikely-to-end-supply-crisis-even-as-brent-slips-below-100\/\">take six to eight weeks<\/a>, keeping spot prices elevated.&nbsp;&nbsp;<\/p>\n<p>\u201cGlobal physical supply of crude oil could take up to eight weeks to return to pre\u2011conflict levels. The price impact of a deal is being felt immediately in futures, but the physical market will take considerably longer to agree.\u201d<\/p>\n<p>Exxon and Chevron saw profits dented by hedging mismatches, Shell leveraged higher prices to beat forecasts, and BP capitalized on volatility through trading. <\/p>\n<p>All four companies warned that geopolitical uncertainty would continue to shape results.\u00a0\u00a0<\/p>\n<h2 class=\"wp-block-heading\">Outlook&nbsp;&nbsp;<\/h2>\n<p>The paradox for oil majors is clear: high prices support revenues, but logistical bottlenecks and hedging distortions weigh on reported profits.&nbsp;<\/p>\n<p>Investors are watching Exxon and Chevron for recovery once deferred profits are booked, Shell for integration of ARC Resources, and BP for sustained trading strength.&nbsp;&nbsp;<\/p>\n<p>With the Strait of Hormuz still unstable, second\u2011quarter earnings will hinge on whether peace talks translate into actual barrels reaching markets. <\/p>\n<p>Until then, the majors remain caught between futures optimism and physical market constraints.\u00a0\u00a0<\/p>\n<p>The post <a href=\"https:\/\/invezz.com\/news\/2026\/05\/09\/oil-majors-post-mixed-q1-as-iran-war-distorts-profits-product-flows\/\">Oil majors post mixed Q1 as Iran war distorts profits, product flows<\/a> appeared first on <a href=\"https:\/\/invezz.com\">Invezz<\/a><\/p>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The world\u2019s biggest oil companies delivered a turbulent set of first\u2011quarter earnings, underscoring how the war in Iran and the closure of the Strait of Hormuz have distorted both profits and physical flows.&nbsp;While Shell and BP beat expectations on the back of strong trading and higher prices, ExxonMobil and Chevron reported headline profit declines, blaming&hellip;<\/p>\n","protected":false},"author":1,"featured_media":4762,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-4761","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/4761","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4761"}],"version-history":[{"count":0,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/4761\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/media\/4762"}],"wp:attachment":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4761"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4761"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4761"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}