Exxon Mobil lost 49% in earnings in the third quarter

Exxon Mobil lost 49% in earnings in the third quarter

  • Exxon Mobil prints 49% loss in earnings in Q3 of 2019.
  • EPS and revenue beat the Refinitiv's forecast.
  • Exxon Mobil lost 1% in the stock market in 2019 so far.

The leading American multinational oil and gas company, Exxon Mobil, reported earnings in the third quarter on Friday. The 49% decline in earnings, as per the report, was slightly better than the Wall Street forecast that fueled the stocks up by 3% on Friday.

The earnings were reported to have fallen from $6.2 billion in Q3 of 2018 to the current $3.2 billion in the third quarter of 2019.

Exxon Mobil Beats Refinitiv’s Estimate For EPS And Revenue

The oil company managed to beat Refinitiv’s forecast for earnings per share (EPS) as well. Estimated at 67 cents for each share, Exxon Mobil reported a better than expected 75 cents per share of adjusted earnings on Friday. Refinitiv had also forecasted $64.79 billion in revenue for the oil-giant that was slightly topped and noted at $65.05 billion, according to the Q3 earnings report.

Upstream income in the third quarter for estimated by FactSet at $2.36 billion for Exxon Mobil. Having missed the target, the business reported a much lower $2.17 billion in upstream income. Results for downstream income, on the other hand, have been posted better than expected, i-e, $1.23 billion versus FactSet’s forecast of $1 billion. Income from chemicals was also estimated by FactSet at $223.6 million. Exxon Mobil printed, however, printed much better results for chemicals income at $241 million.

Other noticeable figures accentuated in the report include exploration and capital expenditures of $7.7 billion in the third quarter. Oil equivalent production climbed to 3.9 million barrels per day that marked an almost 3% increase from the figure for last year. Liquid production hiked by 4% (year-over-year) while natural gas volumes marked an increment of 1% as compared to Q3 of 2018.

The report further added that the Permian Basin oil-field contributed the most in production hike, by as much as 7% when compared to the last quarter, and a remarkable 70% year-over-year.

Following the report, Darren Woods, the Chief Executive of Exxon Mobil, also remarked that the company is expected to continue divesting its assets, that is likely to hit the $15 billion mark (cash) by 2025.

Exxon Mobil’s Stock Performance

Exxon Mobil’s stock opened at $68.40 on Friday and was seen trading at $69.60 at the end of the regular session. In terms of yearly performance, the stock has dropped by 1%. Exxon Mobil’s performance in the stock market is remarkably behind the S&P 500 that has gained 21% this year and the energy sector that has printed a growth of 1% so far.

By Michael Harris
Specialising in economics by academia, with a passion for financial trading, Michael Harris has been a regular contributor to Invezz. His passion has given him first hand experience of trading, while his writing means he understands the market forces and wider regulation.

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