Two of the largest petroleum companies in America have seen their quarterly profits take a major hit in recent months.
Chevron and Exxon Mobil have long been considered heavyweights in the oil industry. However, through the first quarter of 2025, each company has seen a dramatic drop-off in reported earnings.
According to a Chevron press release, the company reported first-quarter earnings of $3.5 billion. That is a significant decline compared to the $5.5 billion that Chevron reported in the first quarter of 2024. Included in the earnings report was the net loss of $175 million, which stemmed from the legal reserves and a tax charge due to changes in the Energy Profits Levy in the United Kingdom.
Despite the earnings drop-off, Chevron Chairman and CEO Mike Wirth remained confident of the company's direction.
"This quarter reflected continued strong execution and progress on our objective to deliver superior shareholder value," Wirth said in the press release.
For Exxon Mobil, a company press release reported "industry-leading" earnings of $7.7 billion in the first quarter of 2025. That's around a decrease of $500 million from the company's 2024 first-quarter earnings.
"The work we've done to transform our company over the past eight years positions us to excel in any environment," Exxon Mobil Chairman and CEO Darren Woods said.
As the Financial Times noted, Chevron and Exxon Mobil each appear to be facing "their toughest year since the coronavirus pandemic." A major cause for their decrease in earnings could be attributed to the Trump administration's ongoing trade war and the uncertainty surrounding its resolution.
President Donald Trump ordered the imposition of tariffs on dozens of countries in order to "strengthen the international economic position of the United States and protect American workers."
Michael Alfaro, chief investment officer at Gallo Partners, offered up a grim outlook for Chevron as oil prices continue to drop.
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For sure 👍 "Investors have been laser focused on shareholder returns and Chevron's results indicate it is unlikely to maintain the high level of payouts against an uncertain and deteriorating demand environment," Alfaro told the Financial Times.
In recent years, consumers have signaled their desire to make the switch to purchasing electric vehicles. In 2024, over 17 million EVs were sold across the globe. This has also contributed to a lowered demand for fossil fuels.
If you're looking to invest your hard-earned money into eco-friendly companies, GreenPortfolio is a great, free resource that can connect you with remote financial advisors who make climate-forward investing easy. GreenPortfolio also offers information on building portfolios and choosing the smartest banking options that fit your needs.
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