Display ad
HomeBusinessMarketExxon says rising oil and gas prices will net it a Q2...

Exxon says rising oil and gas prices will net it a Q2 windfall profit of at least $2.5 billion

Exxon Mobil Corp. stated in a submitting late Friday it expects a lift of at the very least $2.5 billion to its backside line within the second quarter from rising costs for oil and gasoline, with billions extra coming from larger margins for gasoline and different power merchandise.

Exxon
XOM,
+2.23%

estimated between $1 billion and $1.4 billion over first-quarter revenue resulting from crude-price adjustments and between $1.5 billion and $1.9 billion in adjustments in gasoline costs.

Changes in margins for power merchandise might convey between $4.4 billion and $4.6 billion within the quarter, plus between $700 million and $900 million from derivatives not but settled, the corporate stated in the filing. Maintenance bills, seasonal pure gasoline demand drop and others objects will offset a few of that upbeat view.

Exxon inventory rose 0.5% within the after-hours session Friday, after ending the common buying and selling day up 2.2%. So far this 12 months, Exxon shares superior 43%, contrasting with losses of round 20% for the S&P 500 index.
SPX,
+1.06%

Exxon is slated to report second-quarter earnings in late July. Ahead of its first-quarter ends in late April, the oil large equally told investors to expect billions more to its bottom line due to larger power costs.

Analysts polled by FactSet anticipate the oil large to report adjusted second-quarter earnings of $2.96 a share on gross sales of $92.4 billion. That would evaluate with adjusted EPS of $1.1 on gross sales of $67.7 billion within the second quarter of 2021.

The Biden administration and plenty of others in Washington have known as on Exxon and different power corporations to rein in gasoline costs. Last month, President Joe Biden despatched letters to major oil refiners to ask them to take action to curb prices.

Exxon and rival Chevron Corp.
CVX,
+1.19%

are the 2 remaining built-in power corporations within the U.S., which means they produce oil and gasoline in addition to transport, retailer, and refine the hydrocarbons. ConocoPhillips spun off its refining enterprise a decade in the past, naming it Phillips 66.
PSX,
+2.90%

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular