Exxon Mobil Expects $1 Billion Q3 Profit Boost from Rising Crude Prices

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Exxon Mobil Corp. announced in a recent filing that it expects its third-quarter profit to increase by approximately $1 billion, thanks to the surge in crude prices. The company estimates that the profit will be between $900 million and $1.3 billion higher compared to the second quarter, primarily driven by changes in crude prices. Additionally, gas-price changes are anticipated to contribute between $200 million and $400 million to the increased profit.

However, Exxon does anticipate a decrease of $600 million to $400 million in profit due to thinner margins for its chemicals.

Following this news, Exxon’s shares experienced a slight dip of 0.5% during the extended trading session after already declining by 3.7% earlier in the day. Interestingly, the stock reached a record high at the end of last month, a milestone not seen since November 1972.

Although oil futures prices recently hit a five-week low, there is still optimism as they have been steadily approaching the $100 per barrel mark.

Looking ahead, Exxon is set to release its third-quarter earnings report in early November. According to FactSet consensus, adjusted earnings per share are estimated to be $2.35, with sales of $85.6 billion. This would be a significant decrease compared to the third quarter of 2022 when adjusted EPS stood at $4.45 on sales of $112 billion.

Throughout this year, Exxon’s shares have shown a modest gain of nearly 2%, whereas the S&P 500 index has experienced a growth of about 10%.

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