ExxonMobil Corp yesterday said that it expected earnings from its oil and gas production to slow down in the fourth quarter from the prior quarter.
The largest U.S. oil producer posted earnings of US$12.4 billion from the unit in the third quarter, according to a securities filing, Reuters reported yesterday.
Meanwhile, Bloomberg yesterday reported ExxonMobil as saying that lower oil and natural gas prices had a negative impact on fourth-quarter earnings of about US$3.7 billion compared with the preceding three months.
The impact from lower gas prices was as much as US$2.4 billion, while oil accounted for as much as US$1.7 billion, the Irving, Texas-based oil giant said in the filing, according to Bloomberg.
The losses were lessened by upstream mark-to-market derivative gains of as much US$1.5 billion.
Bloomberg said that the data provides an early snapshot of the fourth-quarter results that Exxon is scheduled to release on Jan. 31.
Those results will cap what Wall Street expects to be Exxon’s most profitable year ever, Bloomberg said. Net income for 2022 will total more than US$58 billion, according to the median of analysts’ estimates compiled by Bloomberg.
Profits were fueled by soaring oil and gas prices following Russia’s invasion of Ukraine. Those commodities have dipped in recent months amid China’s struggle to deal with Covid and broader concerns about global economic activity.
