Exxon Mobil reported a 49% drop in third quarter earnings at lower oil prices and higher costs. However, the results slightly exceeded Wall Street expectations and the shares were slightly higher in early trading.
Exxon earned $ 3.2 billion in the third quarter, down from $ 6.2 billion from the same period a year ago.
Here's how the energy giant's performance has compared to Wall Street expectations:
- Adjusted earnings: 75 cents per share versus 67 cents expected by Refinitive
- Income: $ 65.05 billion versus 64.79 billion $ expected by Refinitive
- Current income: $ 2.1
- Downstream revenue: $ 1.23 billion versus $ 1 billion expected by FactSet estimates
- ] Chemical Revenue: $ 241 million versus $ 223.6 million expected by oc FactSet
The company spends $ 7.7 billion on capital and exploration costs, including in the key Permian Basin region. Oil equivalent production rose 3% year-on-year, reaching 3.9 million barrels per day. Liquid and natural gas production volumes also increased by 4% and 1% respectively.
The biggest jump comes from production in the Permian Basin, which grew 7% from the second quarter of 2019 and over 70% in the year
. "We are making excellent progress in our long-term growth strategy," the chairman said. and Exxon CEO Darren Woods. "Growth in Perm continues to lead to an increase in production of liquids and we are ahead of schedule for the first oil in Guyana. The value of our position in Guyana has improved further this quarter with additional discovery, our fourth this year. We are also making good progress on our privileged investment in downstream and chemicals, "he added.
Woods also stated that Exxon has made progress in absorbing its assets, which the company expects to generate $ 15 billion in cash by 2025.
"The competitiveness of our Portfolio has been further enhanced by the sale of non-strategic assets , reaching nearly one-third of our $ 15 billion target, "he said.
The profits were increased by the $ 300 million tax related item.
Exxon's shares fell 1% after the end of Thursday, trailing both the S&P 500 and the energy sector. The S&P 500 grew by 21% in 2019, while the energy sector grew by 1%.
In the last quarter, Exxon has beaten the top and bottom line estimates as the strength of the business throughout the company offsets the weakness in the refining and chemicals departments. However, the profit decreased by 21%.
The fall in oil prices, problems with over-supply and high production are among the factors that have severely affected the energy sector. It is also particularly vulnerable to any signs of slowing global growth.