HOUSTON (Reuters) -Exxon Mobil on Friday beat Wall Avenue’s third quarter revenue estimate, boosted by sturdy oil output in its first full quarter that features volumes from U.S. shale producer Pioneer Pure Sources (NYSE:).
Oil business earnings have been squeezed this yr by slowing demand and weak margins on gasoline and diesel. However Exxon (NYSE:)’s year-over-year revenue fell 5%, a a lot smaller drop than at rivals BP (NYSE:) and TotalEnergies (EPA:), which posted sharply decrease quarterly outcomes.
The U.S. oil producer reported earnings of $8.61 billion, down from $9.07 billion a yr in the past. Its $1.92 per share revenue topped Wall Avenue’s outlook of $1.88 per share, on larger oil and gasoline manufacturing and spending constraints.
“We had quite a few manufacturing information” within the quarter, mentioned finance chief Kathryn Mikells, citing an about 25% year-on-year enhance in oil and gasoline output, to 4.6 million barrels per day.
Exxon shares rose about 1.9% in premarket buying and selling to $119 per share.
Exxon earlier this month had flagged working revenue seemingly fell, main Wall Avenue analysts to shave their quarterly per share earnings outlook by practically a dime.
The outcomes included Exxon’s first full quarter of manufacturing following its acquisition in Might of Pioneer Pure Sources. The $60 billion deal drove manufacturing within the high U.S. shale basin to almost 1.4 million barrels per day of oil and gasoline, serving to overcome a 17% decline in common oil costs within the quarter ended Sept. 30.
Exxon disclosed it raised its quarterly dividend by 4% after producing free money circulation of $11.3 billion, nicely above analysts’ estimates. Rivals Saudi Aramco (TADAWUL:) and Chevron (NYSE:) have needed to borrow this yr to cowl shareholder returns after boosting dividends and buybacks to draw traders.
Exxon didn’t present a fourth quarter outlook, however mentioned it plans to offer traders with a revised manufacturing forecast subsequent month. OPEC in December might add 180,000 barrels per day of further provide to a market with an unsure demand outlook.
The market is apprehensive about oil provide outrunning demand. Costs slumped over the summer time and stay about 12% under June’s common.
Exxon’s earnings from producing gasoline and diesel had been $1.3 billion, down from $2.44 billion in the identical quarter a yr in the past as weak margins and a refinery outage pummeled gasoline outcomes.
An Illinois refinery went offline for practically a month in the course of the quarter, a shutdown that analysts estimate hit working earnings by about $250 million.
“Refining margins positively got here down within the quarter. When you have a look at total outcomes for the refining enterprise, we really feel fairly good,” mentioned Exxon’s Mikells. Per unit refining margins since 2019 have about doubled on a continuing margin foundation, she mentioned.
Income from Exxon’s chemical enterprise, which has been pressured by business overcapacity for 2 years, rose within the quarter to $893 million, in comparison with $249 million a yr in the past, on a slight enhance in margins.
“We’re in a significantly better place (in chemical compounds) as a result of we have now a powerful Gulf Coast footprint that advantages from Gulf Coast () costs,” mentioned CFO Mikells.
