Exxon Mobil reported third-quarter earnings on Friday which stunned analysis as they exceeded expectations in both profit and revenue. This comes as a surprise to many as Hurricane Harvey took a heavy toll on the companies refining capabilities during the July-September quarter.
Shares rose nearly 1 percent at $84.25 in pre-market trading. The oil heavyweight earned 93 cents per share on $66.16 billion in revenue, much higher than the expected 86 cents a share on $63.39 billion that was forecasted.
According to Exxon insiders, earnings took a roughly 4 cents-per-share hit as a result of Harvey which shut down nearly a quarter of U.S. refineries in August and September. This included Exxon’s Baytown and Beaumont refineries near the Texas Gulf Coast.
Additionally, as the world’s largest publicly-traded oil company, they also enjoyed a healthy performance in its exploration, production, and refining businesses. Darren Woods, Exxon chairman, said in a statement, “A 50 percent increase in earnings through solid business performance and higher commodity prices is a step forward in our plan to grow profitability.”
Cash flow from operations, a key component and indicator of financial health, has increased 41 percent to 7.5 billion over the last year. All in all the Texas-based oil giant posted profits that topped a billion dollars over all three of its major businesses.
Upstream sector earnings, such as exploration and production of fossil fuels, were up $947 million from a year ago reaching $1.6 billion. Downstream sector earnings, such as refining crude, posted profits up $303 million from a year ago reaching $1.5 billion due to better profit margins.
In a statement to stockholders, Vice President of Investor Relations Jeff Woodbury said, “All three business segments delivered solid results, generating cash flow from operations and asset sales that exceeded dividends and net investments for the fourth consecutive quarter.”
Article written by HEI contributor Kevin Abbott.