Higher natural gas prices to drive Exxon third-quarter earnings
HOUSTON, Sept 30 (Reuters) – Exxon Mobil Corp signaled on Thursday that increased oil and fuel costs would enhance third-quarter earnings by as a lot as $1.5 billion over the second quarter.
Pure fuel costs in the USA have greater than doubled this yr and oil costs are up 52% as vitality demand recovers from the COVID-19 pandemic.
Exxon additionally has been slicing prices and shedding personnel following a historic loss in 2020. Decrease prices coupled with the current rebound in oil and fuel have pushed revenue sharply increased.
Pure fuel costs ought to give the U.S. oil producer the most important improve in working revenue within the quarter, the corporate signaled in a company submitting. Revenue from pure might rise between $500 million-900 million this quarter over final, it stated.
U.S. pure fuel costs had been buying and selling at virtually $6 per million British Thermal items on Thursday.
More healthy refining margins might add from $500 million to $700 million in working income this quarter. Exxon quarter outcomes shall be posted on Oct. 29.
Chemical margins, however, might reduce working revenue by between $200 million and $400 million within the quarter, the corporate stated within the submitting.
It additionally stated unsettled derivatives might cut back working revenue from oil and fuel manufacturing by between $100 million-500 million within the interval.
Final yr, the corporate suffered a $680 million loss within the third quarter on decrease oil costs and manufacturing volumes.
Exxon shares closed on Thursday at $58.82, up 43% this yr.
Reporting by Sabrina Valle in Houston and Uday Sampath in Bengaluru; Enhancing by Shounak Dasgupta and Matthew Lewis
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