ExxonMobil beats third-quarter profit estimates on refining boom

By Sheila Dang

HOUSTON, Oct 30 (Reuters) - ExxonMobil beat Wall Street expectations for third-quarter profit on Friday, as soaring refining margins driven by the US-Israeli war on Iran and Ukrainian strikes on Russian refineries boosted the largest US oil producer’s earnings. 

Adjusted earnings per share for the quarter were $4.23, surpassing the average analyst expectation of $4.08 that was compiled by LSEG.  

Here are more details from the third quarter:

• Adjusted total earnings were $17.5 billion, beating the average analyst estimate of $16.6 billion as compiled by LSEG

• Adjusted upstream earnings were $7.3 billion, a 20% decline from the second quarter, as benchmark Brent crude prices were lower than in the previous three months

• Fighting across the Middle East and the Russia-Ukraine war have knocked out fuel-making capacity and caused global supply shortages of diesel

• Resulting higher fuel prices have led to booming profits for all the Western oil majors, including Shell and TotalEnergies, which reported higher-than-expected earnings on Thursday

• Adjusted downstream earnings totaled $9 billion, a 120% surge from the previous quarter, due to higher refining margins

• Exxon produced 4.5 million barrels of oil equivalent per day, roughly flat from the second quarter

• Exxon earned $1.3 billion in adjusted earnings from specialty products, up 32% from the previous quarter

• The company paid $4.3 billion in dividends and repurchased shares worth $5.1 billion

• The company announced a 2027 share repurchase program of $20 billion, the same amount as in 2026

• Company says its US Gulf Coast refineries reached the second-highest diesel production level on record and also operated at 100% crude-unit utilization

• "We continued to rise to the challenge of meeting global energy needs, drawing on unmatched scale, integration and technical capabilities,” Exxon CEO Darren Woods said

• Exxon has a higher percentage of production located in the Middle East compared with rivals and has been on the hunt for more oil resources in other parts of the world

• Firm signed an agreement last month to explore, develop and produce shale in Azerbaijan and has held talks for a possible return to Venezuela

(Reporting by Sheila Dang in Houston; Editing by Nathan Crooks and Thomas Derpinghaus)