ExxonMobil increases quarterly earnings by $1.2 billion

Exxon Mobil Corp. had third-quarter 2023 earnings of $9.1 billion, up from second-quarter earnings of $7.9 billion. Results improved with strong operating performance, including record third-quarter refining throughput as well as a higher crude price and industry refining margin environment, the company said in a release Oct. 27.

These factors were partly offset by weaker chemical margins, unfavorable derivative mark-to-market impacts, and trading timing effects that are expected to unwind over time, the operator continued.

Cash flow from operations was $16 billion, up $6.6 billion versus second-quarter 2023. In line with plans, capital and exploration expenditures were $6 billion in this year’s third quarter, bringing year-to-date 2023 expenditures to $18.6 billion.

Full-year capital and exploration expenditures are expected to be at the top end of the guidance of $23-25 billion.

Upstream

Upstream third-quarter earnings were $6.1 billion, an increase of $1.5 billion from this year’s second quarter, driven by higher crude prices, lower scheduled maintenance, and favorable tax impacts. Identified items unfavorably impacted earnings by $14 million in the quarter. Compared with the same quarter last year, earnings decreased $6.3 billion (OGJ Online, Oct. 28, 2022).

Excluding the impacts from divestments, entitlements, and government-mandated curtailments, net production grew about 80,000 boe/d, driven by the Permian basin and Guyana.

Year-to-date production was 3.7 MMboe, consistent with full-year guidance. The portfolio mix continued to improve with liquid production growth from Guyana and the Permian basin, offsetting lower natural gas production from divestments, ExxonMobil said.

Full-year gross production of 380,000 b/d is expected in Guyana, about 20,000 b/d above prior projections on early startup of Payara and increased production from debottlenecking, while the operator’s Permian basin assets are on track to deliver 10% year-on-year growth, the company said. 

Products, chemicals

Energy Products third-quarter earnings were $2.4 billion, up $100 million sequentially due to improved industry refining margins and strong reliability with record throughput.

Chemical Products third-quarter earnings were $249 million, down from $828 million in this year’s second quarter. Industry margins compressed from higher feedstock costs and lower price realizations as industry supply outpaced rising demand. Improved volume/mix effects from growth in performance chemicals partially offset weaker margins. Compared with the same quarter last year, earnings decreased $563 million on weaker industry margins.

The Baytown chemical expansion project started up in the third quarter, adding 750 kilotonnes/year of performance chemicals production capacity and marks the company's entry into the linear alpha olefins market (OGJ Online, Oct. 2, 2023).