“Exxon Mobil said a sharp decline in refining earnings and weak performance across all business lines will reduce fourth-quarter earnings by about $1.75 billion from the prior quarter.”, — write: epravda.com.ua
Exxon Mobil said a sharp decline in refining earnings and weak performance across all business lines will reduce fourth-quarter earnings by about $1.75 billion from the prior quarter. This is reported by the Reuters agency. In a filing with the US Securities and Exchange Commission (SEC), Exxon also said that the sale of mining assets would provide about $400 million in proceeds, but total asset impairment charges of about $600 million. The company did not specify the reasons for the depreciation. Exxon’s results are being closely watched to gauge the outlook for other major oil companies that will soon begin reporting.Advertisement: Financial firm LSEG expects Exxon to post earnings of $1.76 per share in the fourth quarter, down from $2.48 per share in the previous quarter. the same period last year. Exxon’s forecast points to earnings that are “significantly below expectations,” Biraj Borhatharia, an oil market analyst at RBC Capital Markets, said in a note to investors. He also noted “significant challenges” in the oil refining sector. The company said refining margins would cut earnings by $300 million to $700 million compared to third-quarter levels. In addition, the impact of timing factors could reduce profits by another $500-900 million.Advertisement: Global demand for gasoline and diesel turned out to be lower than expected, and the start-up of new refineries in Asia and Africa led to an oversupply in the market. In the U.S., fuel inventories rose during the quarter as refineries maintained high loadings amid weaker-than-expected demand.