ExxonMobil Q3 profits to climb from last quarter on higher prices
EXXONMOBIL said on Wednesday (Oct 4) big increases in oil, gas and fuel prices would deliver a third-quarter operating profit between US$8.3 billion and US$11.4 billion, below the year ago’s record earnings but up from its second quarter.
ExxonMobil’s snapshot of operating profits, delivered in a securities filing after the market close, signals a good quarter for oil companies on high oil prices and strong demand for petrol and diesel.
The largest US oil producer posted a total profit in the same quarter a year ago of US$19.7 billion and US$7.9 billion in its second quarter this year. Analysts currently forecast a US$9.22 billion, or US$2.37 per share profit, for the latest quarter, according to financial firm LSEG.
ExxonMobil’s oil and gas production earnings were boosted by about 30 per cent increase in average crude oil prices during the period. The Brent global benchmark ended the quarter near US$97 per barrel, up from US$72 per barrel at the end of June, JPMorgan said in a note.
The strong operating profits still fall shy of the same period a year ago, which saw ultra-high natural gas prices after Russia’s invasion of Ukraine, and record refining throughput on fuel demand.
The securities filing put oil and gas operating profits at between US$5.2 billion and US$6.7 billion, compared to last year’s US$12.4 billion in its third-quarter oil and gas business.
Refining also slipped to less than half the year ago’s US$5.8 billion operating profit.
ExxonMobil shares fell nearly 4 per cent on Wednesday to US$111.50 as oil prices tumbled on a global bond sell-off and rising interest rates. The company’s shares hit a record high of US$120 last week.
Full results are due to be released on Oct 27. REUTERS
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