Exxon Mobil has recorded higher revenues and revenues than expected in the third quarter of 2018, but total oil and gas production has fallen again. With its better than expected ratio, the largest oil company in the capital market broke a negative series, with four of the five quarter results before it was out of the forecast.
The dry facts
The key rows of the Exxon Mobil quarterly report are:
→ The company's profit rose by 57% to $ 6.24 billion; earnings per share were $ 1.46 against the estimated $ 1.23 and 93 cents in the third quarter of 2017.
→ During the quarter, Exxon Mobil posted a turnover of $ 76.61 billion, exceeding $ 73.55 billion.
→ Favorable results were boosted by rising oil prices and increased production in the US Permini Basin.
→ While Exxon's global crude oil production fell 3% over the previous year, gas production fell by 4% over the same period in 2017. The company's production activity declined in nine of the past 10 quarters.
→ Despite the fall in total output, research and production profit increased more than doubled to $ 4.23 billion. The fall in gas production was offset by an increase in US mining activity, rising oil prices and unique tax cuts – a $ 360 million tax cut.
→ The profitability of the company's refineries has improved, but the conversion of maintenance and refineries into the production of low-sulfur fuels hindered profitability.
→ Cash generation capacity increased to $ 11.1 billion to the highest level in the last four years.
Which is the most interesting thing
As part of total production decline, US oil production in the permits pond increased 57% over the previous year, according to its July announcement, according to which the company will increase oil production to provide higher margins in parallel with output less gas. The Perm Basin is one of Exxon's most important growth areas and collapse production in this area can be further expanded as the company expands its activity by launching new projects, said Darren W. Woods, president and CEO of the company . According to the company, its investments continue to prioritize new productive projects, as well as dividend payments in case of share repurchases.
An interesting part of the report is that although the net sales of the downstream business area were $ 1.64 billion, the result was negatively affected by the fact that Exxon's numerous refineries carry out maintenance and upgrading and warn that they will be for the next quarters will also be characteristic. In the works, the company is refining its refineries to produce low-sulfur fuels, which is expected to be deepened by the tougher maritime transport rules that will come into force in 2020.
How did the exchange rate react?
Expecting figures that exceed expectations, Exxon Mobil's stock price rose 3% on Friday's trading and closed the day with a 1.6% increase. Although, to a large extent, due to the rise in oil prices, good results have been released, seen in many important roles, the continued decline in total output determines investors to be careful.