Exxon Mobil Holdings Corp. signaled soaring third-quarter refining profits as wars in the Persian Gulf and Russia crippled fuel-making facilities. Higher refining margins added about $4.5 billion to Exxon Mobil’s earnings, the company said in a preliminary earnings statement on Friday. That’s on top of the $4.1 billion the company made from refining in the second quarter. North America’s biggest oil producer is scheduled to disclose full results on Oct. 30. Exxon shares rose about 1% before the start of regular trading in New York.
European supermajors have also indicated strong refining margins after fuel production became a critical pinch-point amid broader energy market disruptions amid the US-Iran and Russia-Ukraine conflicts. The Gulf Coast 3-2-1 crack spread, an indication of US refining profitability, was 28% higher in the quarter on a sequential basis, touching a record $72.64 on Sept. 22.
Exxon Mobil’s surging profits will be partly offset by lower oil prices, which reduced profits by about $1.3 billion. It will also take a $2.5 billion hit due to “timing effects,” or derivative positions linked to cargoes that have been shipped but not yet delivered.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing