Exxon Mobil beats expectations for profits and revenue, even as Harvey takes a bite out of earnings


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Exxon Mobil on Friday reported third-quarter earnings that beat on the top and bottom line, even as impacts on its refining business from Hurricane Harvey took a bite out of profits.

Shares of Exxon were up nearly 1 percent at $84.25 in pre-market trading.

The oil major earned 93 cents per share on $66.16 billion in revenue. Analysts had expected earnings of 86 cents a share on $63.39 billion in revenues.

In the year ago period, Exxon earned 63 cents per share on $58.68 billion in revenues.

Exxon said earnings took an estimated 4 cents-per-share hit from Harvey, which shut down about a quarter of U.S. oil refining during the quarter. The storm impacted the company’s Baytown and Beaumont refineries in Texas along the U.S. Gulf Coast.

The world’s largest publicly-traded oil company credited higher commodity prices in the third quarter, as well as better performance in it exploration and production and refining businesses.

“A 50 percent increase in earnings through solid business performance and higher commodity prices is a step forward in our plan to grow profitability,” Exxon chairman and CEO Darren Woods, said in a statement.

Cash flow from operations — a key metric of financial health in the industry — increased 41 percent to $7.5 billion over the last year.

The Irving, Texas-based oil giant posted profits that topped a billion dollars across all three of its major segments.

Earnings in Exxon’s upstream sector, which involves exploration and production of fossil fuels, were $1.6 billion, up $947 million from the year ago period. The segment’s output also increased 2 percent from last year.

The downstream business, which refines crude oil into fuels like gasoline, posted a profit of $1.5 billion, up $303 million from the same period last year. The increase was primarily due to better profit margins.

Exxon’s chemicals business earned $1.1 billion, down $79 million from a year ago, as weaker profit margins weighed on results.

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