Exxon Mobil Sees $500 Million Rebound in Q3 Refining Margins
As the First of the Oil Majors to Post, Exxon Often Sets Trend for Industry
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Exxon Mobil Corp. said refining margins rebounded in the third quarter, adding about $500 million to earnings compared with the three months prior.
The increase in profit at the company’s fuel-making division, the largest among its Big Oil rivals, will add $300 million to $700 million to earnings in the third quarter, the Spring, Texas-based company said in a statement Oct. 6. Exxon expects a smaller gain of about $200 million from higher margins in its chemicals division while the change in oil and gas prices will have a negligible effect on earnings.
Exxon is the first of the oil majors to post quarterly earnings guidance and often sets the trend for the industry. Summer driving season typically sees a pickup in refineries’ profitability but is notable in that it appears to dwarf any moves in oil and gas prices in the third quarter.
Exxon also booked a one-off charge of about $500 million due to restructuring costs. Last week, the company announced plans to cut about 2,000 jobs globally as it consolidates smaller offices into regional hubs. Most of the reductions will come in Europe and Canada.
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