ExxonMobil expects up to US$300 million boost to Q3 upstream earnings from oil prices

EXXONMOBIL said on Monday changes in crude oil prices over the third quarter could impact the company’s upstream earnings from negative US$100 million to as much as a positive US$300 million.

The company also signaled in a regulatory filing that stronger margins in the refining business could boost earnings by US$300 million to US$700 million, compared with the second quarter.

Benchmark Brent crude prices averaged US$68.17 per barrel from July through September, up 2 per cent from the previous quarter. US natural gas prices declined 12.5 per cent from the previous quarter and averaged US$3.07 per million British thermal units.

ExxonMobil said changes in gas prices could affect its quarterly upstream earnings from a negative US$200 million to as much as a positive US$200 million.

The company also said restructuring costs could negatively impact overall earnings by US$400 million to US$600 million.

ExxonMobil’s regulatory filing provides a snapshot of market factors that affected the top US oil firm’s business and is watched by investors for signals about the performance of the broader industry and other producers.

The company will release its final quarterly results on Oct 31.

Analysts expect ExxonMobil to report adjusted earnings of US$1.79 per share for the third quarter, according to consensus estimates compiled by LSEG.

French oil major TotalEnergies and UK-based BP will report third-quarter results on Oct 30 and Nov 4.

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The industry bellwether had posted US$5.4 billion in upstream earnings for the second quarter. REUTERS