Exxon expects dip in Q3 profits

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OilNOW
OilNOW
OilNOW is an online-based Information and Resource Centre

ExxonMobil Corp signalled last week that its Q3 operating profits could dip to US$11 billion before impairments, a significant drop from its Q2 record of US$17.9 billion, according to a recent 8-K filing with the US Securities and Exchange Commission (SEC).

Form 8-K, which is also called a “current report,” must be filed with the SEC whenever there is a major event within a company that is of interest to shareholders.

Seeking Alpha – a crowd-sourced content service for financial markets – reported that the earnings preview indicated natural gas was the one business to benefit from higher prices in Q3.

ExxonMobil to drill over 60 exploration wells offshore Guyana in six years | OilNOW

Changes in the prices for oil and liquids along with lower refining and chemical margins decreased results in the quarter, compared to Q2.

XOM expects a positive Q3 impact of US$1.8 billion-$2.2 billion from changes in natural gas prices compared to Q2 but sees a gloomy impact of US$1.4 billion-$1.8 billion because of lower liquids prices. It also sees the margin for energy products declining by US$2.7 billion-$2.9 billion compared to Q2.

At US$1.5 billion a piece, Exxon says 10 FPSOs by 2030 remain in play for Guyana | OilNOW

The oil major noted that pricing details consider market dynamics, and seasonal patterns while margin impacts, unscheduled downtime, foreign exchange fluctuation and other factors were not included in the estimates.

XOM’s shares have jumped 9% in the last two trading sessions as crude oil prices surged following reports that the Organisation of Petroleum Exporting Countries and its partners (OPEC+) are considering a substantial production cut.

Official Q3 results are expected to be released on October 23.

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