Exxon Mobil Anticipates Lower Third-Quarter Earnings Due to Declining Oil Prices, Reports Reuters

Exxon Mobil has indicated that a decline in oil prices likely reduced its third-quarter upstream earnings by between $600 million and $1 billion, according to a regulatory filing released on Thursday.

During the third quarter, oil prices dropped by 17%, marking the largest quarterly decrease in a year, amid concerns regarding the global demand for oil. By the end of the trading quarter, futures settled at $71.77 per barrel.

In addition, the company noted that weaker refining margins would also negatively impact profits by as much as $1 billion. Global fuel markets are facing challenges due to reduced consumer and industrial demand, particularly in China, where economic growth is slowing and the adoption of electric vehicles is increasing.

On Thursday, Exxon’s shares closed at $122.58, reflecting a slight increase of one cent in after-hours trading.

In the second quarter, Exxon reported $7.07 billion in upstream earnings and a net profit of $9.1 billion in the same quarter of the previous year, translating to $2.25 per share.

Analysts project that the oil major will report an adjusted profit of $1.97 per share for the third quarter, based on estimates compiled by LSEG.