Business
Exxon, Chevron’s Q1 Earnings Down 46%, 37% Despite Soaring Oil Prices
As crude oil deliveries bow to supply disruptions in the Middle East, oil giants, Exxon Mobil and Chevron have reported drops in profit in the first quarter of 2026 despite surging oil prices.
Exxon’s quarterly earnings fell to $4.2 billion from about $7.7 billion the same quarter last year, a decline of about 46 per cent, while Chevron’s profits fell to $2.2 billion from about $3.5 billion, down about 37 per cent. Still, both companies beat Wall Street expectations.
However, America’s two largest oil companies are still expected to eventually reap the benefits of soaring oil prices, which reached levels unseen since 2022 this week as the war in Iran continues, Reuters reported.
In a prepared statement, Exxon said that “timing effects” and volume impacts in the Middle East reduced reported earnings; when excluding those effects, the company reported $8.8 billion in profit. At Chevron, unfavourable timing effects totaled about $3 billion for the quarter, according to the company.
“One of the things that we called out in our press release was the timing,” Darren Woods, Exxon’s chair and chief executive officer, said in an interview. “As you close the quarter in the volatile market, you book the hedges, the paper, but the physical barrels are in inventory until they get delivered.
“So you get this deferred profit that we wanted to basically highlight, and make sure that our investors understood that the work that we’re actually doing to meet the demands today are resulting in benefits not necessarily booked in the quarter,” Woods added.
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At the start of the war, Donald Trump declared on Truth Social: “The United States is the largest Oil Producer in the World, by far, so when oil prices go up, we make a lot of money.”
Certain oil and gas companies are already reaping the benefits. BP announced that its profits more than doubled in the last quarter, crediting “exceptional oil trading” for its highest quarterly profit since 2023 – an announcement that led advocacy groups and some European finance ministers to call for greater taxes on windfall profits.
Other earnings reports indicate that it may take longer for oil companies to report clear gains. ConocoPhillips, a partner in Qatar’s state gas company, cut its forecast annual output due to disruptions in Qatar’s liquified natural gas operations caused by the war. Iranian attacks on QatarEnergy LNG’s export plant will take years to repair, state energy officials have said.
Chevron and Exxon’s stock jumped at the start of the war but eased in April as the US and Iran agreed on a ceasefire and the reopening of the strait of Hormuz. And Lockheed Martin, a key defense contractor with the federal government, initially saw its stock jump 25 per cent since the start of the year, but has since dropped to roughly the same levels.
Meanwhile, gas prices at the pump continue to climb, with the current average reaching $4.39, up from $3.187 a year ago. Americans are also facing fears of elevated inflation and slow job growth amid turmoil in the Middle East.
More than 100 Chinese original equipment manufacturers are being wooed for investment, technology and manufacturing capacity to aid growth in Nigeria’s oil and gas industry.
The Nigerian Content Development and Monitoring Board (NCDMB) made the disclosure through its Director, Project Certification and Authorisation Division and Senior Technical Adviser to the Executive Secretary, Austin Uzoka.
This was detailed in a statement issued by the Board which stated that Uzoka was representing the Executive Secretary, Felix Ogbe, at the 15th China Shale Oil and Gas Summit in Chengdu, China, where he made the disclosure.
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According to Ogbe, the board was seeking to move the relationship between Nigerian oil and gas operators and Chinese manufacturers beyond the conventional buyer-seller model to investment, manufacturing, technology transfer and integration into global supply chains.
He said the Nigerian Oil and Gas Content Development Act (NOGCDA) guaranteed patronage for oil and gas equipment manufacturing facilities established in Nigeria, adding that such investments could also provide access to opportunities across the Gulf of Guinea.
“We are looking beyond the traditional buyer-seller relationship. What can we build together? We want Chinese companies to see Nigeria not simply as a market for their products, but as a strategic investment destination, a platform for manufacturing and technology development, and a gateway to opportunities across the wider African market,” he said.
He highlighted the Nigerian Oil and Gas Park Scheme (NOGPS) as a platform for Chinese original equipment manufacturers to establish manufacturing, assembly and service operations in Nigeria.
He said the scheme would provide opportunities for technology transfer, technical arrangements and the integration of Nigerian businesses into the supply chains of Chinese companies.
The ES also identified China’s capabilities in manufacturing, engineering, technology and energy infrastructure as areas that could support Nigeria’s industrial development.
“China has developed tremendous capabilities in manufacturing, engineering, technology and energy infrastructure. We want to explore how those capabilities can be connected with the opportunities that exist in Nigeria, for mutual benefits,” he added.
Nigeria’s local content policy had evolved from increasing Nigerian participation in oil and gas projects to a broader industrial development agenda focused on manufacturing, technology ownership and global competitiveness, he pointed out.
“Nigeria’s local content journey has evolved significantly since the local content law was enacted in 2010. What began primarily as an effort to increase Nigerian participation in the oil and gas industry has developed into a broader industrial development agenda focused on building capabilities, deepening manufacturing, promoting technology ownership and positioning Nigerian businesses to compete within regional and global markets,” he observed.
The engagement formed part of Nigeria’s participation in the 15th China Shale Oil and Gas Summit, held from September 20 to 23 at the Chengdu Century City International Conference Centre.
The summit, themed ‘Empowering Efficient and Green Development via Intelligent Technologies, Innovating to Lead the Shale Oil and Gas Revolution’, provided a platform for Nigerian oil and gas stakeholders to showcase investment opportunities in manufacturing, technology and oil and gas services.
According to the NCDMB, several Chinese OEMs expressed interest in exploring business relationships with Nigerian companies and participating in the country’s growing oil and gas manufacturing ecosystem.
In her closing remarks, the General Manager, Midstream, PCAD, Ms Lekoma Phimia, urged stakeholders to build on the connections established at the session to develop commercially viable and sustainable business relationships.
The NCDMB also used the exhibition to provide prospective investors and industry players with information on Nigeria’s oil and gas sector, local content opportunities and avenues for establishing operations in the country.
The board said the Chengdu engagement was part of efforts to expand Nigeria’s international industrial connections and advance the objectives of the Nigerian Oil and Gas Industry Content Development Act (NOGICDA).
It added that its focus was to move the local content agenda from participation to capability, manufacturing, and ultimately technology ownership and regional competitiveness.
NIPCO Group has announced plans to develop a Floating Liquefied Natural Gas (FLNG) project in Nigeria, with the proposed development estimated to require more than $3bn in investment.
This statement was made at a press conference on Thursday by the Managing Director of NIPCO Group, Nagendra Verma, who said the proposed project would have an envisaged LNG production capacity of approximately three million tonnes per annum, subject to the outcome of feasibility studies, regulatory approvals and a final investment decision.
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Verma said the project, which would mark NIPCO’s entry into the Liquefied Natural Gas (LNG) sector, was being considered for locations in the Escravos area of Delta State and the Akwa Ibom region.
“This proposed development is envisaged to comprise an FLNG facility along with associated marine and export infrastructure with the potential to serve both the international LNG market and growing domestic LNG demand in Nigeria. The proposed project is presently envisaged to produce LNG unified LNG of approximately 3 million L per annum, 3 million metric tons per annum. The proposed development is expected to represent a significant investment currently estimated in excess of $3bn.
“The final location shall be determined subsequent to the ongoing feasibility study. We are looking at strategic locations that will facilitate access to upstream gas resources, LNG processing, marine transportation and both international and domestic markets,” he said.
According to him, NIPCO had been evaluating the proposed FLNG project for the past six to nine months and was currently undertaking preliminary technical, commercial and feasibility assessments.
“We are considering various development concepts, technology solutions, financing structures and commercial options with a view to establishing a technically robust and commercially sustainable project,” Verma said.
He said the proposed development would comprise an FLNG facility alongside associated marine and export infrastructure, with the potential to serve international LNG markets as well as Nigeria’s growing domestic gas demand.
“The project is presently envisaged to have an LNG production capacity of approximately three million tonnes per annum.
“However, this remains subject to the outcome of the ongoing feasibility and technical studies, project economics, regulatory approvals and final investment decisions,” he said.
Verma said NIPCO was also evaluating the shipping and logistics infrastructure required to support both export and domestic LNG supply.
The Managing Director said the ongoing assessment covers upstream gas supply and reserves, FLNG technology and configuration, LNG production capacity, marine and export infrastructure, domestic LNG supply opportunities, shipping and logistics requirements, project economics and financing structure.
FCT Generates More IGR Than Six North Central States Combined in Three Years
The Federal Capital Territory (FCT) generated more Internally Generated Revenue (IGR) than the six states in the North Central geopolitical zone combined between 2023 and 2025, according to figures from the National Bureau of Statistics (NBS).
The FCT recorded a total IGR of ₦849.80 billion during the three-year period, while Kwara, Niger, Kogi, Plateau, Nasarawa and Benue collectively generated ₦704.42 billion.
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The FCT recorded steady growth in its internally generated revenue throughout the period, rising from ₦211.10 billion in 2023 to ₦282.36 billion in 2024, before reaching ₦356.34 billion in 2025.
For the six North Central states, combined IGR stood at ₦176.55 billion in 2023, increased to ₦214.96 billion in 2024 and rose further to ₦312.91 billion in 2025.
Kwara State recorded the highest cumulative IGR among the six states, generating ₦226.20 billion over the three years.
It was followed by Niger with ₦122.71 billion, Kogi with ₦102.73 billion, Plateau with ₦102.08 billion, Nasarawa with ₦81.58 billion, and Benue with ₦69.12 billion.
The FCT’s three-year IGR was therefore about ₦145.38 billion higher than the combined revenue of the six North Central states.
The figures also show that the combined IGR of the six states increased substantially in 2025, when their total reached ₦312.91 billion, compared with ₦214.96 billion in 2024.
See full list below:
North Central States — Three-Year IGR (2023–2025)
Kwara — ₦226.20 billion
Niger — ₦122.71 billion
Kogi — ₦102.73 billion
Plateau — ₦102.08 billion
Nasarawa — ₦81.58 billion
Benue — ₦69.12 billion
North Central Total — ₦704.42 billion
By Year:
2023 — ₦176.55 billion
2024 — ₦214.96 billion
2025 — ₦312.91 billion
FCT:
2023 — ₦211.10 billion
2024 — ₦282.36 billion
2025 — ₦356.34 billion
Three-year total — ₦849.80 billion
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