BAKU, Azerbaijan, May 3. ExxonMobil reported a modest recovery in its Chemical Products segment during the first quarter of 2025, with earnings improving sequentially but still trailing last year’s levels amid a tough industry environment, Trend reports.
The segment earned $273 million in Q1 2025 under U.S. GAAP, more than doubling the $120 million posted in the fourth quarter of 2024. The $153 million quarter-on-quarter increase was driven by higher base volumes and lower expenses, though these gains were partially offset by weaker margins resulting from elevated feedstock and energy costs.
However, the figure remains sharply down from the $785 million earned in the first quarter of 2024, a decline reflecting persistent pressure from weaker global chemical margins, lower sales volumes, and higher expenses linked to plant turnarounds and start-up costs for new, advantaged projects.
In the United States, earnings rose to $255 million from $230 million in the prior quarter, though they remain roughly half of the $504 million reported in Q1 2024. Non-U.S. operations returned to profitability in Q1 2025, generating $18 million after reporting a $110 million loss in the fourth quarter. Despite the recovery, this compares unfavorably to the $281 million earned by international operations in the same period a year ago.
Earnings excluding identified items mirrored GAAP figures, with worldwide earnings of $273 million in Q1 2025, up from $215 million in Q4 2024 but still significantly below the $785 million achieved in Q1 2024.
Chemical Products sales volumes reached 4,776 thousand metric tons in Q1 2025, an increase from 4,635 kt in the previous quarter, though still trailing the 5,054 kt recorded in the first quarter of 2024. The slight sequential growth reflects improved base operations, though industry demand softness continues to weigh on overall volumes.
ExxonMobil highlighted operational progress in its chemicals portfolio, with its China Chemical Complex commencing operations ahead of schedule and under budget. When fully operational later this year, the facility is expected to produce 1.6 million tons of polyethylene and 850,000 tons of polypropylene annually, with over 75% of capacity dedicated to high-value products.
Additionally, the company’s second advanced recycling unit in Baytown, Texas, began operations in April, doubling ExxonMobil’s advanced recycling capacity to 160 million pounds of plastic waste annually — a key milestone in its circular economy ambitions.
