Exxon Mobil Anticipates Crude Price Impact To Boost Earnings
Lekha Gupta 1 year ago
EquitiesLarge CapNews
Exxon Mobil (XOM) expects changes in oil and gas prices to impact its earnings in the third quarter. Chemical and Specialty Products may also be affected. The company plans to release third-quarter results on October 31.
Exxon Mobil Corporation (NYSE:XOM) shares are trading higher premarket on Tuesday. On Monday, the oil giant stated that it anticipates changes in oil prices to impact its Upstream results by ($100) million to $300 million in the third quarter compared to the second quarter.
Also, changes in gas prices are expected to impact its Upstream results by ($200) million to $200 million.
Also, Exxon Mobil projects that variations in industry margins will positively impact Energy Products earnings by $300 million to $700 million.
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On the other hand, the company expects changes in industry margins to impact Chemical Products earnings by $100 million – $300 million and Specialty Products earnings by ($100) million – $100 million in the third quarter.
Moreover, changes in timing effects are expected to have an impact of ($400) million to $0.0 billion in Upstream earnings and ($200 million to $200 million on Energy Products earnings.
Additionally, scheduled maintenance is expected to impact Upstream, Chemical Products, and Specialty Products results by ($100 million) – $100 million each, while Energy Products may see an effect of $0.0 billion – $200 million.
According to Benzinga Pro, analysts estimate Exxon Mobil to report third-quarter adjusted earnings per share of $1.79 and revenues of $87.18 billion.
Last month, the company reportedly entered into a preliminary, non-binding arrangement with Russia’s Rosneft to explore avenues for recovering billions lost after its withdrawal from Russian operations in 2022.
The company plans to release third-quarter results on October 31.
Investors can gain exposure to XOM via Global X Funds Global X PureCap MSCI Energy ETF (NYSE:GXPE) and Vanguard Energy ETF (NYSE:VDE).
Price Action: XOM shares were trading higher by 0.52% to $114.79 premarket at last check Tuesday.
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