Exxon anticipates an increase in Q3 earnings of up to $300 Million from rising oil prices
Exxon Mobil announced on Monday that changes in crude oil price over the third-quarter could affect the company's earnings upstream from a negative $100 million to a positive 300 million.
In a regulatory filing, the company indicated that higher margins in its refining operations could increase earnings from $300 million to $700 millions compared to the second quarter.
Benchmark Brent crude oil prices increased by 2% to $68.17 a barrel in the third quarter of 2018. Natural gas prices in the United States fell 12.5% over the previous quarter, averaging $3.07 for every million British thermal unit.
Exxon has said that changes in gas prices can affect its quarterly earnings upstream from a negative 200 million dollars to as high as positive 200 million dollars.
According to the company, restructuring costs may also have a negative impact on overall earnings of $400 million to $660 million.
Investors are interested in the regulatory filing of Exxon because it provides an overview of factors that have affected the business of the largest U.S. oil company.
The company will announce its final quarter results on October 31, 2018.
According to LSEG's consensus estimates, analysts expect Exxon will report a third-quarter adjusted profit of $1.79 a share.
The third quarter results of TotalEnergies, a French oil company, and BP (based in the UK) will be announced on November 4 and October 30.
The industry leader had reported $5.4 billion upstream earnings in the second quarter. Reporting by Sumit S. Saha, Bengaluru; Sheila Dang, Houston; and Nathan Crooks & Shailesh K. Kuber.
(source: Reuters)