Exxon expects profit bump from oil prices of around $1 billion in third quarter - MarketWatch
Exxon expects profit bump from oil prices of around $1 billion in third quarter - MarketWatch
Exxon Mobil Corp. said in a filing late Wednesday that its third-quarter profit is likely to get a bump of around $1 billion from rising crude prices.
Exxon XOM, -3.74% estimated between $900 million and $1.3 billion more than second-quarter profit due to crude-price changes, and between $200 million and $400 million in gas-price changes.
The energy giant is expecting $600 million to $400 million less as a result of thinner margins for its chemicals, however.
Exxon shares dropped 0.8% in the extended session after ending the regular trading day down 3.7%. The stock late last month ended at a record, according to data going back to November 1972.
Oil futures prices on Wednesday ended at their lowest in about five weeks, but had been inching closer to $100 a barrel recently.
Exxon is slated to report third-quarter earnings in early November, with FactSet consensus calling for adjusted earnings of $2.35 a share on sales of $85.6 billion. That would compare with adjusted EPS of $4.45 on sales of $112 billion in the third quarter of 2022.
So far this year, Exxon shares have gained nearly 2%, compared to an advance of around 10% for the S&P 500 index SPX.
Related Knowledge Center: ENERGY BASICS: petroleum
While electric-powered vehicles may be the ride of the future, oil remains at least for now the dominant fuel for transportation around the world. And after a period of time at the end of the 20th century when oil was subject to wide fluctuations in price, new supplies in North America as a result of non-conventional recovery techniques have helped stabilize prices.