ExxonMobil Q3 Results Top Estimates; Boosts Dividend

Oil major Exxon Mobil Corp. (XOM) reported Friday a profit for the third quarter that plunged from last year, reflecting lower natural gas and crude oil realizations as well as weaker industry refining margins. However, adjusted earnings per share and quarterly revenues topped analysts’ expectations.

For the third quarter, the company reported net income attributable to ExxonMobil of $9.07 billion or $2.25 per share, sharply higher than $19.66 billion or $4.68 per share in the prior-year quarter.

Third-quarter results included net favorable identified items of nearly $1 billion associated with the completion of the XTO Energy Canada and Romania Upstream affiliate divestments and one-time benefits from tax and other reserve adjustments, partly offset by impairments.

Excluding special items, adjusted earnings were $2.27 per share, compared to $4.45 per share in the year-ago quarter.

On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $2.24 per share for the quarter. Analysts’ estimates typically exclude special items.

Total revenues and other income for the quarter declined to $90.76 billion from $112.07 billion in the same quarter last year. Wall Street expected revenues of $83.76 billion for the quarter.

The company’s oil-equivalent production in the quarter decreased to 3.69 million barrels per day from 3.72 million Boe in the prior-year period.

ExxonMobil’s upstream segment earnings halved to $6.13 billion from $12.42 billion last year, reflecting a nearly 60 percent decrease in natural gas realizations and a 14 percent decrease in crude realizations.

Energy products segment earnings were $2.44 billion, sharply lower than $5.82 billion last year on weaker industry refining margins and unfavorable foreign exchange impacts.

Chemicals segment’s earnings plunged to $249 million from last year’s $812 million on weaker industry margins, and speciality products segment’s earnings were $619 million, down from $762 million last year.

Capital and exploration expenditures were $6.02 billion in the third quarter, compared to $5.73 billion last year. This brings year-to-date 2023 expenditures to $18.6 billion, expected to be at the top end of the full-year guidance of $23 billion to $25 billion.

The company said it continued to strengthen its portfolio with the closing of the Thailand refinery divestment in the third quarter.

The company also announced an agreement to merge with Pioneer Natural Resources, a combination that will increase U.S. Permian production, enhance energy security and accelerate Pioneer’s path to net zero.

The Corporation also declared a $0.04 per share higher fourth-quarter dividend of $0.95 per share, payable on December 11 to shareholders of record of Common Stock at the close of business on November 15, 2023.

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