ExxonMobil Corp. said lower oil prices and refining margins reduced third-quarter earnings by $1.6 billion compared with the previous period. The oil giant revealed quarterly earnings guidance in a regulatory filing Thursday.
The impacts of lower oil prices and shrinking refining margins will be partly mitigated by gains of about $900 million from timing effects and a reduction in scheduled maintenance at refineries. Natural gas prices and chemical margins will cause little change to earnings, the company said.
Chevron (CVX) and ExxonMobil (XOM) stocks fell on Friday after both oil majors reported year-over-year profit declines for the first quarter that were impacted by lower natural gas prices and a decrease in refining margins.
ExxonMobil’s adjusted earnings of $2.06 per share fell 27% from the prior year period and came in short of analysts’ estimates for $2.19 per share. Profit in the company’s refining segment sank more than 60% from a year ago to $1.4 billion.