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Exxon's $8.6 billion revenue beats as volume offsets price weakness

Exxon Mobil on Friday beat Wall Street's 3rd quarter earnings estimate, increased by strong oil output in its first full quarter that includes volumes from U.S. shale manufacturer Pioneer Natural Resources.

Oil market revenues have been squeezed this year by slowing demand and weak margins on fuel and diesel. But Exxon's year-over-year profit fell 5%, a much smaller drop than at competitors BP and TotalEnergies, which posted sharply lower quarterly results.

The U.S. oil producer reported earnings of $8.61 billion, down from $9.07 billion a year earlier. Its $1.92 per share earnings topped Wall Street's outlook of $1.88 per share, on greater oil and gas production and costs restrictions.

We had a number of production records in the quarter, said financing chief Kathryn Mikells, citing an about 25% year-on-year increase in oil and gas output, to 4.6 million barrels daily.

Exxon shares increased about 1.9% in premarket trading to $ 119 per share.

Exxon earlier this month had actually flagged operating revenue likely fell, leading Wall Street analysts to shave their quarterly per share earnings outlook by nearly a penny.

The results consisted of Exxon's very first complete quarter of production following its acquisition in May of Pioneer Natural Resources. The $60 billion deal drove production in the top U.S. shale basin to almost 1.4 million barrels daily of oil and gas, helping get rid of a 17% decrease in average oil rates in the quarter ended Sept. 30.

Exxon revealed it raised its quarterly dividend by 4% after generating complimentary cash flow of $11.3 billion, well above analysts' price quotes. Competitors Saudi Aramco and Chevron have had to obtain this year to cover shareholder returns after increasing dividends and buybacks to bring in investors.

Exxon did not provide a fourth quarter outlook, however stated it prepares to offer financiers with a revised production forecast next month. OPEC in December may include 180,000 barrels daily of extra supply to a market with an unsure demand outlook.

The market is worried about oil supply outrunning need. Rates dropped over the summer and stay about 12%. listed below June's average.

Exxon's incomes from producing gas and diesel were. $ 1.3 billion, below $2.44 billion in the very same quarter a year. ago as weak margins and a refinery failure mauled fuel results.

An Illinois refinery went offline for almost a month. during the quarter, a shutdown that experts estimate hit. operating earnings by about $250 million.

Refining margins definitely came down in the quarter. If you take a look at total outcomes for the refining organization, we. feel pretty good, stated Exxon's Mikells. Per system refining. margins considering that 2019 have actually about doubled on a constant margin. basis, she stated.

Make money from Exxon's chemical company, which has been. pressed by industry overcapacity for 2 years, increased in the. quarter to $893 million, compared to $249 million a year earlier, on. a slight boost in margins.

We are in a much better position

(source: Reuters)