NEW YORK, May 2, 2025 (BSS/AFP) - ExxonMobil reported lower profits on Friday due to a drop in crude oil prices and refining margins partly offset by increased output from the acquisition of US producer Pioneer.

The petroleum giant reported profits of $7.7 billion in the first quarter, down 6.2 percent from the year-ago level. Revenues were essentially flat at $83.1 billion.

The purchase of Pioneer Natural Resources for around $60 billion boosted ExxonMobil's volumes from the Permian Basin, a fast-growing petroleum region in the southwestern United States.

ExxonMobil also saw petroleum production growth in Guyana, which helped to compensate for headwinds in the first quarter, including "significantly weaker" refining margins, the company said in a press release.

ExxonMobil said it is on track to start up 10 "advantaged projects" across its businesses in 2025.

From this group, the company has already started and is ramping production at an "enormous" chemical complex in China that will serve the domestic market and will be "protected from tariff impacts," ExxonMobil vice president Jim Chapman said in prepared remarks for the company's conference call.

ExxonMobil has also launched an advanced recycling unit in Baytown, Texas.

The oil giant said its commitment to cost controls means it will do well even if the economy weakens.

"The economic uncertainty we saw reflected in the markets in March and April may indeed continue," Chapman said, adding ExxonMobil has "built our business to excel in any market environment."

Shares rose 1.0 percent in pre-market trading.