Exxon Mobil Corp. reported better-than-expected third-quarter profit due to strong performance in its refining and chemicals businesses.
The company stated a 3% increase in net income to $8.07 billion, or $1.89 earnings per share, compared to last years performance of $7.87 billion, or $1.79 per share, and above analysts expectations of $1.71.
Exxon reported a 4.3% decrease in revenue to $107.5 billion, but above the $105.51-billion projection of analysts polled by Thomson Reuters. Corporate and financing expenses were $570 million, up $110 million from the third quarter of 2013.
“Exxon Mobil’s quarterly results demonstrate the strength of our integrated business model” Chairman and CEO Rex Tillerson said in a statement. “Integration across Upstream, Downstream and Chemical gives us competitive advantages in scale, efficiency, technical and commercial capabilities, regardless of market fluctuations over the business cycle” he added.
Production fell 4.7% on an oil-equivalent basis. Excluding the impact of the expiry of the Abu Dhabi onshore concession, production decreased 1%. However, Mr. Tillerson said he is not worried.
“We continue to meet our operational and project development objectives,” he added. “Upstream production for 2014 remains on track with previous full-year estimates of 4 million oil-equivalent barrels per day as the company adds new production from project start ups.”
Recently the company took on few major projects, including a gas-export project in Papua New Guinea and an oil sands venture in Canada. However, Exxon said it would stop operations in Russia’s Arctic Ocean due to U.S. sanctions.
Exxon reported profit increased to slightly above $1 billion in its refining unit, compared to last years result of $592 million. The companys chemicals unit reported a 17% year-to-year increase in profit to $1.2 billion in Q3.
Exxon spent $3 billion in the three months through September in order to buy back 30 million shares of its common stock and said it will spend another $3 billion in the fourth quarter for the same purpose.
Chevron Corp., the second-largest U.S. oil company by market value surpassed only by Exxon, reported lower production with higher earnings on Friday.
Exxon Mobil Corp. lost 0.15% on Thursday and closed at $94.45 in New York. On Friday the stock gained 2.39% to close at $96.71, marking a one-year increase of 7.67%. The company is valued at $412.438 billion. According to the Financial Times, the 19 analysts offering 12-month price targets for Exxon Mobil Corporation have a median target of $103.00, with a high estimate of $115.00 and a low estimate of $85.00. The median estimate represents a 6.50% increase from the last price of $96.71.
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