Exxon Mobil, Chevron Shares Rise As Q3 Profits Beat Estimates

Oil majors Exxon Mobil Corp. (XOM) and Chevron Corp. (CVX) on Friday reported sharp increase in third-quarter profits from last year on strong revenue growth that reflected higher crude oil prices.

Exxon Mobil’s revenues and adjusted earnings as well as Chevron’s earnings beat analysts’ expectations, while Chevron’s revenues missed their estimates. Shares of both companies are rising in pre-market activity.

Exxon Mobil’s third-quarter net income was $6.24 billion, up 57.2 percent from $3.97 billion in the prior-year quarter. Earnings per share rose to $1.46 from $0.93 last year.

On average, 18 analysts polled by Thomson Reuters expected earnings of $1.23 per share. Analysts’ estimates typically exclude one-time items.

Total revenues and other income rose 25 percent to $76.61 billion from $61.10 billion last year. Analysts were looking for revenue of $73.55 billion.

The company’s upstream earnings were $4.23 billion, up sharply from $1.57 billion last year, reflecting the strengthening of crude oil and natural gas prices.

Downstream earnings rose to $1.64 billion from $1.53 billion last year as industry fuels margins strengthened, while Chemical segment earnings fell to $713 million from $1.09 billion last year.

However, Exxon Mobil’s oil-equivalent production for the quarter declined 2 percent from last year to 3.79 million oil-equivalent barrels per day.

Chevron’s third-quarter net income more than doubled to $4.05 billion or $2.11 per share, from $1.95 billion or $1.03 per share in the prior-year quarter. The Street expected earnings of $2.06 per share.

The latest quarter’s results include a write-off, an asset impairment, and a non-recurring contractual settlement totaling $930 million in the upstream segment, and a gain of $350 million on the sale of southern Africa refining, marketing and lubricant assets.

Total revenues and other income for the quarter rose 21 percent to $43.99 billion from $36.21 billion a year ago, but missed analysts’ consensus estimate of $46.67 billion.

Chevron’s worldwide net oil-equivalent production rose to 2.96 million barrels per day, representing its highest quarter ever, from 2.72 million barrels per day last year.

Chevron’s upstream segment’s earnings surged to $3.38 billion from $489 million last year, reflecting higher crude oil and natural gas realizations as well as higher natural gas sales volumes.

However, downstream earnings declined to $1.37 billion from $1.81 billion last year, reflecting lower gains on assets sales in the international segment.

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