October 6, 2023[Rigzone]- Exxon Mobil Corp. likely got a $2.1 billion boost to earnings from higher oil prices and refining margins in the third quarter, which was only partially offset by a decline in chemicals profitability.
Rising crude prices accounted for a gain of about $1.1 billion over the previous quarter, while refining increased profits by about $1 billion, Spring, Texas-based Exxon said in a filing Wednesday. An increase in gas prices added about $400 million to earnings, but that will be wiped out by losses in chemicals, which declined even further from already low levels.
The guidance suggests Exxon’s earnings will be about $2.33 a share, according to John Royall, an analyst at JPMorgan Chase & Co., which is in line with the average of analysts’ estimates compiled by Bloomberg. The stock dropped 0.8% in after-market trading.
Analysts estimate Exxon’s third-quarter earnings will increase from the second quarter after three straight sequential declines, the longest stretch since the crash in oil prices from 2014 to 2016. Exxon is the first of the oil majors to post third-quarter earnings expectations, and its guidance has strong read-across for rivals Chevron Corp., BP Plc, Shell Plc and TotalEnergies SE.
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