Exxon projects Q3 earnings near record result
ExxonMobil moves up while the rest of the US stock market is down Wednesday after presenting preliminary results for the third quarter, which shows the oil company performing stronger than expected.
Surging natural gas prices have raised earnings by USD 2.2bn compared to the second quarter.
Accordingly, the supermajor projects Q3 earnings very close to Q2’22’s record of USD 17.9bn.
The reason why the earnings performance in the third quarter falls short of that of the second is that oil prices have receded, reducing revenue by USD 1.8bn. Meanwhile, refinery production is expected to yield profit USD 2.9bn lower than Q2’s USD 5.3bn, a smaller drop than expected.
”We underestimated the impact of the stronger gas price environment and continued strength in refining margins, driving robust results,” writes Goldman Sachs in a comment, according to Bloomberg News, leading the investment bank to upgrade its earnings estimate per share in the third quarter from USD 3.08 to USD 3.92.
According to Bloomberg News, analysts’ consensus is USD 3.53 per share.
