2023-10-27 11:51:18
Published on Oct 27, 2023 at 1:51 p.m.
Oct 27 (Archyde.com) – Majors Exxon Mobil and Chevron on Friday reported lower third-quarter profits compared to record figures recorded a year ago with the rise in oil prices linked to the invasion of Ukraine by Russia.
Exxon posted a profit of $9.1 billion in the July-September period, down about 54% from the same period in 2022, but up quarter-over-quarter.
The largest U.S. oil producer, however, benefited from higher crude oil prices from the previous quarter and demand for gasoline and diesel.
Wall Street had lowered its outlook for the third quarter after the group reported a drop in profits in the chemicals sector and refining margins.
Chemical Products, Exxon’s chemical business, hit by rising raw material costs, reported a profit of $249 million in the third quarter, compared to $828 million in the second.
Its rival Chevron also recorded a drop in third-quarter profit year-on-year, a few days after agreeing to buy its American rival Hess Corp for nearly 50 billion euros.
The major reported in July that upstream and downstream revisions would likely reduce production by around 110,000 boepd during the quarter.
Analysts are also reporting a decline in activity in North America as oil and gas prices have declined from 2022 highs.
Profits from the upstream sector – exploration, discovery and production – fell about 38% to $5.8 billion during the quarter.
The oil major reported a net profit of $6.5 billion, compared to $11.2 billion in the same period last year.
Adjusted earnings came in at $3.05 per share, compared to analysts’ expectations of $3.75 per share, according to LSEG data. (Reporting Mrinalika Roy and Sabrina Valle; French version Diana Mandiá and Mariana Abreu, editing by Kate Entringer)
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