Exxon Mobil Corp. (NYSE: XOM) reported estimated third-quarter 2016 results before markets opened Friday. The integrated oil and gas giant posted quarterly diluted earnings per share (EPS) of $0.63 on revenues of $58.68 billion. In the same period a year ago, the company reported EPS of $1.01 on revenues of $67.34 billion. Third-quarter results also compare to the consensus estimates for EPS of $0.58 on revenues of $61.34 billion.
Third-quarter profits declined by 38%, from $4.19 billion in the year-ago quarter to $2.65 billion. In the U.S. upstream division, the net loss increased from $442 million in the third quarter of last year to $477 million. Net profit in Exxon’s international upstream business declined sharply from $1.8 billion a year ago to $1.1 billion. Lower liquids and gas realizations decreased earnings by $880 million, while volume and mix effects increased earnings by $80 million. All other items, including lower expenses partly offset by unfavorable foreign exchange effects, increased earnings by $60 million.
In the downstream division, earnings tumbled from $2.03 billion to $1.23 billion. Weaker margins, mainly in refining, decreased earnings by $1.6 billion while favorable volume and mix effects increased earnings by $170 million. All other items increased earnings by $580 million, including lower maintenance expenses and gains from divestments in Canada.
Liquids production in the quarter decreased by 120,000 barrels a day to 2.21 million barrels a day. U.S. production rose by 16,000 barrels a day to 484,000 barrels. Natural gas production increased by 77 million cubic feet per day year-over-year to 9.6 billion cubic feet. U.S. natural gas production fell by 36 million cubic feet per day to 3.06 billion cubic feet.
Capital spending totaled $4.19 billion in the third quarter, compared with $7.67 billion in the third quarter of last year. U.S. upstream spending was cut by more than half, from $1.99 billion to $712 million, and total upstream capex fell from $6.37 billion a year ago to $3.07 billion.
Exxon did not report any share repurchases in the second quarter. The company paid dividends totaling $3.1 million in the quarter.
Rex Tillerson, Exxon’s chairman and CEO, said:
ExxonMobil’s integrated business continues to deliver solid results. While the operating environment remains challenging, the company continues to focus on capturing efficiencies, advancing strategic investments, and creating long-term shareholder value.
The company did not provide guidance in its press release, but analysts are expecting fourth-quarter EPS of $0.71 on revenues of $67.5 billion, compared with EPS of $0.67 and revenues of $59.81 billion in the fourth quarter of 2015. For the full year, analysts are looking for EPS of $2.18 on revenues of $237.93 billion.
Exxon’s shares traded down about 0.9% in Friday’s premarket to $86.12, in a 52-week range of $71.55 to $95.55. Analysts had a 12-month price target of $89.50 before this latest report.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
