ExxonMobil Profit Probably Doubled in Q3 as Gas, Oil Prices Surged

Key Takeaways

  • Analysts estimate ExxonMobil will report earnings per share (EPS) of $3.59 vs. $1.58 in Q3 FY 2021.
  • Upstream phase internet earnings for the oil big is anticipated to greater than triple that of Q3 FY 2021.
  • Income for ExxonMobil is anticipated to rise for a seventh straight quarter.

ExxonMobil Corp. (XOM), the world’s second-largest oil and gasoline firm by market worth, will in all probability say earnings greater than doubled within the third quarter amid surging oil and gasoline costs.

Exxon’s earnings per share (EPS) in all probability jumped 128% year-over-year to $3.59 whereas income climbed by greater than 53% for the seventh consecutive quarter to $113.6 billion, based on common estimates from Seen Alpha.

Vitality corporations have reported document earnings this yr on vital pure gasoline enterprise from Europe following Russia’s invasion of Ukraine. Oil and gasoline costs spiked earlier within the yr, prompting actions by the Biden administration to launch holdings from the Strategic Petroleum Reserves to convey down costs. Exxon widening revenue margins, the goal of political criticism this yr, come whilst its refining and chemical compounds companies weaken.

Web earnings from the corporate’s upstream phase, a key metric that tracks the exploration, improvement, and manufacturing of oil and pure gasoline, is anticipated to triple for Q3, albeit on the slowest tempo in three quarters.

Exxon shares have climbed by 70% prior to now yr, in contrast with a 16% drop for the S&P 500 Index (see chart under).


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Exxon Earnings Historical past

Exxon’s revenue fell for 5 consecutive quarters beginning within the fourth quarter of 2018 after which swung to losses in every quarter of 2020. That development reversed within the final six quarters, when with EPS typically surpassed pre-pandemic ranges.

The corporate’s income declined for eight quarters in 2019 and 2020, accelerated in 2021 after which cooled once more. Predicted income development within the third quarter is under the prior-year quarter and a slowdown relative to the latest quarter.

ExxonMobil Key Stats
  Estimate for Q3 FY 2022 Q3 FY 2021 Q3 FY 2020
Earnings Per Share ($) 3.59 1.58 -0.15
Income ($B) 113.6 73.8 46.2
Upstream Phase Web Revenue ($B) 3.2 0.9 -0.7

Supply: Seen Alpha

The Key Metric

Exxon’s upstream enterprise is without doubt one of the firm’s three predominant segments. The operations cowl the exploration and improvement of oil and pure gasoline properties in addition to the extraction and manufacturing of crude oil and pure gasoline. Downstream operations, in contrast, check with the manufacturing of refined oil merchandise. Exxon additionally engages in midstream operations, such because the operation of pipelines and storage amenities.

Exxon’s upstream enterprise has carried out inconsistently lately. Like earnings, it dropped for 5 consecutive quarters in 2018 and 2019 earlier than experiencing losses all through 2020. Upstream enterprise mounted a big comeback in 2021, surging previous pre-pandemic ranges. This speedy development has continued however has slowed significantly since Q1 2022. Analysts anticipate upstream internet earnings to greater than triple for Q3, about half the tempo of development of simply two quarters earlier.

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