Exxon Mobil Guides Weaker Segment Profits -- Update
July 01 2019 - 8:27PM
Dow Jones News
By Michael Tobin
Exxon Mobil Corp. (XOM) said weaker natural gas prices and
margins from its chemicals business could weigh on its profit in
the second quarter.
The Irving, Texas-based energy giant said in a securities filing
Monday that its profits generated in the quarter ended June 30 from
its oil and gas exploration, refining and chemicals production
segments may be smaller than what it earned in the year-earlier
period.
Exxon generated $4 billion in profit during the second quarter
of 2018.
Exxon said its upstream segment would generate between $2.4
billion and $3.1 billion in profit, compared with the $3.04 billion
earned in the second quarter of last year and $2.9 billion earned
in the first quarter. The segment's quarterly results benefited
from higher oil prices from the first quarter, but were hurt by a
decline in natural gas prices and maintenance costs as well as
weaker gas demand.
Exxon said its downstream segment would generate between $100
million and $700 million in profit, compared with the $724 million
earned in the second quarter of last year. The segment posted a
$300 million loss in the first quarter. Higher refining margins are
expected to help swing the segment to profitability from the prior
quarter , Exxon said.
Exxon said its chemical segment profit would be between
breakeven and $300 million, compared with the $890 million earned
in the second quarter of last year and the $500 million generated
in the first quarter. Facility maintenance, in addition to a
decline in margins, are expected to weigh on the segment's bottom
line, Exxon said.
Analysts polled by FactSet expect Exxon to post earnings of 93
cents a share, or 89 cents a share on an adjusted basis, on revenue
of $65.7 billion in the quarter.
Exxon is expected to release its second-quarter earnings report
Aug. 2.
Write to Michael Tobin at michael.tobin@wsj.com
(END) Dow Jones Newswires
July 01, 2019 20:12 ET (00:12 GMT)
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