Third time’s a charm—after two underwhelming quarters earlier this year, ExxonMobil (NYSE:XOM) smashed analyst estimates on Friday reporting a 57-percent yearly jump in earnings in the third quarter and an operating cash flow at its highest in four years.
Exxon’s earnings surged by 57 percent to US$6.24 billion in Q3, thanks to higher oil and natural gas prices, and strengthened fuel margins in the downstream in North America and Europe. Earnings per share (EPS) assuming dilution came in at US$1.46, up 57 percent on the year and up 59 percent compared to the second quarter. The EPS in the third quarter easily beat the analyst consensus of US$1.22 of The Wall Street Journal.
Exxon’s total revenues also beat estimates—at US$76.605 billion, they were above Wall Street’s expectations of US$72.46 billion.
Exxon also reported significantly increased cash flow. Net cash provided by operating activities jumped to US$11.1 billion in Q3—the highest cash flow since the third quarter of 2014—and up from US$7.535 billion in Q3 2017 and from US$7.780 billion in Q2 2018.
Exxon’s production, however, dropped by 2 percent to 3.8 million oil-equivalent barrels per day. Excluding entitlement effects and divestments, liquids production increased 6 percent, as growth in North America more than offset decline and higher downtime, Exxon said.
“We are seeing the benefits of integration as we capture value from advantaged feedstock from the Permian and Western Canada for our North American refineries,” Exxon’s chairman and CEO Darren W. Woods said.
“We’re pleased with the increase in production from the second quarter of 2018 recognizing it reflects contributions from just one of our key growth areas, the Permian,” Woods said. “We expect to continue to increase volumes over time as we ramp up activity in the Permian and new projects start up.”
Following the results release, Exxon’s shares were up 1.59 percent as markets closed 4 PM EDT on Friday.
By Tsvetana Paraskova for Oilprice.com
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