ExxonMobil increases quarterly earnings by $1.2 billion

ExxonMobil had third-quarter 2023 earnings of $9.1 billion, up from second-quarter earnings of $7.9 billion. Results improved with record third-quarter refining throughput as well as a higher crude price and industry refining margin environment.
Oct. 27, 2023
3 min read

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).

About the Author

OGJ editors

Sign up for Oil & Gas Journal Newsletters