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The
largest U.S. oil producer issued a snapshot of factors affecting
its third quarter that showed results could land near the
company's $17.9 billion second quarter profit.
Exxon and rivals this year have posted sky-high earnings on
rising energy prices and demand aided by cost-cutting. Gas
prices, in particular, have soared this year on strong demand
from Europe since Russia's invasion of Ukraine.
In the third quarter, U.S. natural gas prices averaged $7.95 per
million British thermal units (mmBtu), up from $7.17 mmBtu in
the second quarter. Brent prices eased to $98 per barrel in the
same period, from an average of $109 between April and June.
Exxon's official results are due on Oct. 28.
The snapshot showing more stellar profits comes after Exxon
Chief Executive Darren Woods and U.S. Energy Secretary Jennifer
Granholm clashed over White House criticism of fuel prices last
week. In a breakdown of individual business units, Exxon
indicated natural gas boosted operating results by about $2
billion, offsetting an about $1.6 billion decline in oil
profits. Earnings from pumping oil and gas could reach about $13
billion, compared to Wall Street's forecast of a $10.1 billion
operating profit.
Weak refining margins reduced profits from selling gasoline and
diesel by about $2.6 billion, offset by lower maintenance costs
and an additional business day during the quarter. Operating
profit could fall to about $3.4 billion from $5.3 billion in the
second quarter, the filing indicated.
Chemical results also will slip by about $300 million from the
prior period's $1.07 billion operating profit, and motor oil
results will double to about $800 million, offsetting the
chemicals drop, the filing showed.
Overall, a tally of changes show an operating profit of about
$17.8 billion, above IBES Refinitiv forecast of a $14.68
billion, or $3.44 per share, profit. Exxon earned $17.9 billion,
or $4.21 per share, an all time record, in the prior quarter.
(Reporting by Arunima Kumar in Bengaluru; Editing by Sriraj
Kalluvila and Cynthia Osterman)
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