HOUSTON – Exxon Mobil Corp XOM.N on Friday posted a $9.1 billion third-quarter profit, about a 54% drop from record earnings a year ago but up from the prior quarter as oil prices recovered. Earnings at the largest U.S. oil producer have benefited from higher crude oil prices compared to the previous quarter and demand for gasoline and diesel.
Wall Street this month trimmed its third-quarter outlook after the company pointed to weaker chemical profits and refining margins.
Exxon’s buoyant performance has led to two all-stock deals: for shale rival Pioneer Natural Resources and for carbon pipeline operator Denbury, both struck as shares traded near an all-time record.
Third-quarter profit was $2.25 a share compared with $4.68 in the same quarter a year ago when oil and gas prices climbed following Russia’s invasion of Ukraine.
The latest quarter’s results benefited from global oil prices that averaged $85.92 per barrel in the quarter, from $77.73 in the second quarter, according to LSEG data.
The results were aided by higher oil and fuel prices, but damped by Exxon’s chemical business, which was hit by higher raw materials costs. Chemical Products third-quarter earnings were $249 million, down from $828 million in the second quarter.
Its cash reserves continued to build, up by 10% over the second quarter’s to $33 billion.
“We feel really good about our cash balance,” said Chief Financial Officer Kathryn Mikells said in an interview. “It puts us in a good position to ultimately ensure we have the flexibility we need when eventually the commodity cycle turns against us.”
Mikells said the company is keeping unaltered its 3.7 million boepd production target for 2023. It is also on track to distribute $17.5 billion in buybacks this year.
Exxon in the third quarter achieved a target to reduce its costs by year end by $9 billion compared to 2019.
Exxon beat a quarter earlier a $9 billion year-end cost saving target versus 2019. The oil producer also placed its full-year capital expenditures at the top end of its $23 billion to $25 billion guidance.
The company has been selling assets around the world as it focuses on more lucrative projects in the U.S. shale and in South America Guyana and it recently put its Italy refinery up for sale.
