SEATTLE (Oil Monster): One quarter after suggesting its earnings could fall by US$1 billion because of fluctuations in crude oil prices, US supermajor ExxonMobil revealed Monday that it was anticipating a more modest impact on its third quarter earnings from commodity pricing.
ExxonMobil believes changes in prices for crude and natural gas could lead to an impact of anywhere from a $300 million loss to a $500 million gain for the third quarter, the company said in a quarterly earnings consideration that was filed with the US Securities and Exchange Commission (SEC).
For crude prices, ExxonMobil predicted an earnings impact ranging from a $100 million loss to a $300 million gain, the SEC filing said. Meanwhile, the impact of natural gas fluctuations was likely to range from a $200 million loss to a $200 million gain.
ExxonMobil was more bullish on its refining units, where the US supermajor projected that market conditions could lead to a gain of anywhere from $300 million to $1.1 billion, the SEC filing showed.
ExxonMobil will reveal its full third quarter earnings on 31 October.
Analysts are predicting $1.75 per share for ExxonMobil in the third quarter, according to projections from TD Cowen.
Monthly spot prices for Brent averaged about $64 per barrel in May, down from $79 in January, as the one-two punch of President Donald Trump’s tariffs and additional Opec+ barrels roiled the industry, according to data from the US Energy Information Administration (EIA).
The Brent average climbed above $71 in June and July following a short-lived fracas between Israel and Iran, but it hovered closer to $68 in August and September, according to EIA data.
Despite the price volatility, ExxonMobil posted a $7.1 billion profit in second quarter, $5.4 billion of which came from the company’s upstream segment.
Its net profit of $1.64 per share beat industry expectations, though profits were down 23% compared to the same quarter in 2024.
Courtesy: www.upstreamonline.com
