ExxonMobil expects third-quarter earnings were hit by lower oil prices

A SLUMP in oil prices probably reduced ExxonMobil’s third-quarter upstream earnings by US$600 million to US$1 billion, the oil major signalled in a regulatory filing published on Thursday (Oct 3).

Oil prices fell by 17 per cent in the third quarter, the largest quarterly decline in a year, on worries about the global oil demand outlook. Brent futures settled at US$71.77 a barrel on the last trading day of the quarter.

The company, in its earnings snapshot, indicated weaker refining margins during the quarter would also hurt profits by up to US$1 billion. Global fuel markets have been hit by softer consumer and industrial demand, especially in China where economic growth is slowing and electric vehicle use is on the rise.

Shares of ExxonMobil closed at US$122.58 each on Thursday. They were up just a one cent in after hours trading.

ExxonMobil posted US$7.07 billion in upstream earnings for the second quarter and a net profit of US$9.1 billion in the year-ago third quarter, or US$2.25 per share.

Analysts expect the industry giant to post an adjusted profit of US$1.97 per share in the third quarter, according to estimates compiled by LSEG. REUTERS