HOUSTON: 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 (RM39.2 billion and RM53.9 billion), below the year ago’s record earnings but up from its second quarter.
Exxon’s snapshot of operating profit, 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 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.
Exxon’s oil and gas production earnings were boosted by an about 30% 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 profit still falls 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 profit 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.
Exxon shares fell nearly 4% 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