Oil major Exxon Mobil Corp. (XOM) reported Friday a profit for the third quarter that soared from last year, reflecting sharply higher upstream and energy product earnings. Adjusted earnings per share for the quarter topped analysts’ expectations, while quarterly revenues missed them.
“The investments we’ve made, even through the pandemic, enabled us to increase production to address the needs of consumers. Rigorous cost control and growth of higher-margin petroleum and chemical products also contributed to earnings and cash flow growth in the quarter,” said Darren Woods, chairman and CEO.
For the third quarter, the company reported net income attributable to ExxonMobil of $19.66 billion or $4.68 per share, sharply higher than $6.75 billion or $1.57 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 $4.45 per share, compared to $1.58 per share in the year-ago quarter.
On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $3.79 per share for the quarter. Analysts’ estimates typically exclude special items.
Total revenues and other income for the quarter soared to $112.07 billion from $73.79 billion in the same quarter last year. Wall Street expected revenues of $115.60 billion for the quarter.
The company’s oil-equivalent production in the quarter increased to 3.72 million barrels per day from 3.67 million Boe in the prior-year period.
ExxonMobil’s upstream segment earnings soared to $12.42 billion from $3.95 billion last year and the energy products segment earnings were $5.82 billion, sharply higher than 529 million last year.
Chemicals segment’s earnings plunged to $812 million from last year’s $2.03 billion and speciality products segment’s earnings were $762 million, down from $839 million last year.
Capital and exploration expenditures were $5.73 billion in the third quarter, compared to $3.85 billion last year. This brings year-to-date 2022 investments to $15.2 billion, on track with full-year guidance of $21 billion to $24 billion.
The Corporation also declared a $0.03 per share higher fourth-quarter dividend of $0.91 per share, payable on December 9.
The company also said it is expanding its Low Carbon Solutions business with the signing of the largest-of-its-kind customer contract to capture and permanently store carbon dioxide to offer competitive emission-reduction services to large industrial customers around the world.
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