Oil and gas giant Exxon Mobil Corporation (XOM.US) begins "reporting losses": Persian Gulf production capacity paralyzed, Q1 global production forced to be interrupted by 6%

Exxon Mobil Corporation (XOM.US) stated that due to the Iran conflict causing most of the energy industry in the Persian Gulf region to be paralyzed, 6% of its global production in the first quarter was forced to be halted. The company revealed on Wednesday that half of these interrupted production capacities were concentrated in a liquefied natural gas facility in Qatar, in which Exxon Mobil Corporation is a partner. The two liquefied natural gas production lines of the facility were damaged. Exxon Mobil Corporation stated in a press release, "Public reports indicate that repairs will take a considerable amount of time. We cannot comment on the time required to restore normal operation of these two production lines until site assessments are completed." Exxon Mobil Corporation is one of the first international major oil companies to disclose the impact of this conflict on its assets in the Gulf region and its surrounding areas. Normally, the region accounts for about one-fifth of the company's global production, based in Texas. The oil giant is scheduled to release its full quarterly earnings on May 1. Its European competitor, Shell (SHEL.US), also released a trading update report on Wednesday, stating that its quarterly natural gas production decreased during the conflict. Qatari officials estimate that the damage to the liquefied natural gas facility is expected to result in an annual revenue loss of about $20 billion, and the repairs may take up to five years. Energy Product Division Meanwhile, Exxon Mobil Corporation stated that due to price fluctuations and the impact of shipping times, its energy product division (including refining and trading business) will see a decrease of $3.7 billion in earnings in the first quarter compared to the last quarter of 2025. Chief Financial Officer, Neil Hansen, said, "These impacts will gradually dissipate over time, and net profits will be realized after the completion of the transactions. These are robust transactions that will ultimately yield substantial profits." Excluding the impact of timing factors, the company's earnings per share have increased from the previous quarter. Executives of major oil companies have been warning that financial markets underestimate the severity of the impact of this conflict on energy supply. Strategists at JPMorgan wrote in a report on April 6 that the conflict has "upended perceptions of the Gulf region as a safe and investable center. Countries like Qatar and Kuwait will face severe growth impacts in the short term, and foreign investment may suffer long-term harm in a broader perspective." Exxon Mobil Corporation expects to gain approximately $2.1 billion and $400 million in revenue in the first quarter due to the increase in crude oil and natural gas prices, respectively. CEO Darren Woods has increased production by over 30% in the past three years through acquisitions and active growth projects, with current daily production close to 5 million barrels of oil equivalent.