NEW YORK, Nov 1 — ExxonMobil reported a dip in third-quarter profits today on lower earnings from its refining business, but the results were strong enough to enable nearly US$10 billion (RM43 billion) in shareholder distributions.
The big US oil company, which saw upstream oil production rise following its acquisition of Pioneer Natural Resources, pointed to the benefits of US$11.3 billion in “structural cost savings” as a driver of the results.
The oil giant returned US$9.8 billion to investors in the three-month period, up from US$9.5 billion in the second quarter. ExxonnMobil lifted the dividend by four per cent, in addition to making share repurchases.
Net profits in the third quarter were US$8.6 billion, down 5.1 per cent from the year-ago period.
Revenues declined less than one per cent to US$90 billion.
While earnings were higher in upstream and chemical products, ExxonMobil saw a big drop in energy products results due to weakened refinery margins.
“Supply from industry capacity additions outpaced record global demand,” ExxonMobil said in its earnings release.
The company pointed to record oil and natural gas output in Guyana and strong results in the Permian Basin, a shale region in Texas and New Mexico.
“We delivered one of our strongest third quarters in a decade,” said Chief Executive Darren Woods.
Shares rose 1.3 per cent in pre-market trading. — AFP
