Exxon Mobil, one of the largest oil producers in the United States, has revealed that significant upticks in oil, gas, and fuel prices are expected to drive a robust third-quarter operating profit, ranging between $8.3 billion and $11.4 billion.
Although this projection falls short of last year’s record earnings during the same period, it marks a notable improvement from the company’s second-quarter results.
The report outlining Exxon’s operating profits was presented through a securities filing released after the market close. This outlook underscores a promising quarter for oil companies, driven by elevated oil prices and a steady demand for gasoline and diesel.
In the corresponding quarter a year ago, Exxon Mobil reported a total profit of $19.7 billion, while the second quarter of this year yielded $7.9 billion in profits. Analysts currently predict a profit of approximately $9.22 billion, or $2.37 per share, for the latest quarter, according to financial firm LSEG.
The earnings from Exxon’s oil and gas production were significantly bolstered by a nearly 30 percent surge in average crude oil prices during the quarter. The global benchmark, Brent crude, concluded the quarter at nearly $97 per barrel, compared to $72 per barrel at the end of June, as noted by JPMorgan.
Despite these strong operating profits, they remain slightly below the figures from the same period last year, a time marked by exceptionally high natural gas prices following Russia’s invasion of Ukraine and record refining throughput due to heightened fuel demand.
The securities filing highlighted oil and gas operating profits in the range of $5.2 billion to $6.7 billion, a notable decrease from the $12.4 billion reported in Exxon’s third-quarter oil and gas business last year. Additionally, refining profits slipped, registering at less than half of last year’s $5.8 billion operating profit.
The oil industry continues to navigate a dynamic market landscape influenced by fluctuating prices, geopolitical events, and evolving consumer demands. Exxon Mobil’s projections for the third quarter indicate resilience in the face of these challenges, reflecting the broader trends in the oil and gas sector.