Exxon posts sharply lower $9.1 billion profit on lower oil, gas prices
By Sabrina Valle
HOUSTON (Reuters) -Exxon Mobil Corp on Friday posted a sharply lower $9.1 billion third-quarter profit, missing analysts' estimates for the second quarter in a row, and off 54% from a year ago.
Earnings by the largest U.S. oil producer have benefited from higher crude oil prices compared to the previous quarter and greater demand for gasoline and diesel, but prices are well off record year-ago levels.
Shares fell about 2% in morning trade to $105.55 as per-share profit of $2.25 was 5% below analysts' forecasts for $2.37 per share. A year ago, the company earned $4.68 per share when oil and gas prices climbed following Russia's invasion of Ukraine.
Results came «broadly in line» with market expectations, according to RBC analyst Biraj Borkhataria, but profit from motor fuels and chemicals were below recent expectations and sharply less than a year ago.
Exxon (NYSE:XOM)'s oil and gas pumping business was hurt by a 60% drop in natural gas prices compared with a year ago, and a 14% drop in crude oil prices, the company said.
REFINING, CHEMICALS HURT
Refined products and chemical profits fell by more than half that of a year ago, with lower margins for gasoline and diesel and foreign exchange clipping results.
Chemical third-quarter earnings were $249 million, down from $828 million in the second quarter due to higher raw material costs.
Exxon's oil and gas output dropped about 1% compared with the same quarter a year ago. It aims to finish the year with production averaging 3.7 million barrels of oil and gas per day.
The company recently struck two deals that will boost future output. It agreed to buy shale rival Pioneer Natural Resources (NYSE:PXD) for $59.5 billion and carbon pipeline operator Denbury
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