According to a securities filing, ExxonMobil indicated strong third quarter operating profits following the previous quarter’s all-time record as gains from natural gas offset weaker refining and chemicals, Reuters reported.
The largest U.S. oil producer released a glimpse of the variables affecting its third quarter, which indicated that results might be close to the $17.9 billion profit the company reported for the second quarter.
This year, Exxon and its competitors have reported sky-high earnings thanks to higher energy prices, increased demand, and cost-cutting. Due to increased demand from Europe as a result of Russia’s invasion of Ukraine, gas prices in particular have risen sharply this year.
In the third quarter, U.S. natural gas prices averaged $7.95 per million British thermal units (mmBtu), up from $7.17 mmBtu in the second quarter. Brent prices eased to $98 per barrel in the same period, from an average of $109 between April and June. Exxon’s official results are due on Oct. 28.
After Darren Woods, the CEO of Exxon, and Jennifer Granholm, the U.S. Energy Secretary, got into a fight last week over the White House’s criticism of fuel prices, the snapshot released today shows even more impressive earnings.
In a breakdown of individual business units, Exxon indicated natural gas boosted operating results by about $2 billion, offsetting an about $1.6 billion decline in oil profits. Earnings from pumping oil and gas could reach about $13 billion, compared to Wall Street’s forecast of a $10.1 billion operating profit.
Weak refining margins caused a $2.6 billion drop in profits from selling gasoline and diesel, which were made up for by decreased maintenance expenses and an extra working day during the quarter. According to the report, operating profit could decrease from $5.3 billion in the second quarter to around $3.4 billion.
According to the report, motor oil results will more than quadruple to roughly $800 million, balancing the reduction in chemical results by nearly $300 million from the preceding period’s $1.07 billion operating profit.
A sum of the modifications indicates an operating profit of nearly $17.8 billion, exceeding the $14.68 billion, or $3.44 per share, profit that IBES Refinitiv had predicted. Exxon achieved an all-time high quarterly profit of $17.9 billion, or $4.21 per share.