ExxonMobil Q3 Earnings Beat but Slip Y/Y on Pricing Woes
ExxonMobil Corporation XOM posted third-quarter 2015 earnings of $1.01 per share, beating the Zacks Consensus Estimate of 89 cents. The bottom line however decreased from $1.89 in the year-ago quarter. The decline stemmed from an environment of persistently falling commodity prices.
In the reported quarter, the energy behemoth witnessed lower commodity prices in the Upstream business, partially offset by improved Downstream margins.
Total revenue in the quarter came at $67.3 billion, much below $107.1 billion in the year-ago quarter. The top line also missed the Zacks Consensus Estimate of $68.0 billion.
Operational Performance
Upstream: Quarterly earnings for the segment were $1.4 billion, down $5.1 billion year over year. The decrease stemmed from lower liquids and gas realizations. Higher volumes partially offset the downside.
Production averaged 3.918 million barrels of oil-equivalent per day, up 2.3% year over year. Liquid production increased 12.9% year over year to 2,331 million barrels per day. Natural gas production was 9,524 MCF/d (millions of cubic feet per day), down 10.1% from the year-ago period.
Downstream: The segment recorded profits of $2 billion in the third quarter, up $1 billion year over year mainly attributable to stronger margins. This was partially offset by unfavorable volume and mix effects.
ExxonMobil's refinery throughput averaged 4.5 million barrels per day (MMBPD), down 2.9% from the year-earlier level.
Chemical: This unit contributed approximately $1.2 billion to the company's profits, up $27 million from the year-earlier quarter. The upside came on the back of lower feedstock costs that gave a boost to margins.
Financials
During the quarter, ExxonMobil generated cash flow from operations and asset sales of $9.7 billion. The company returned $3.6 billion to shareholders through dividends and share repurchases. Capital spending decreased 22% year over year to $7.7 billion.
Zacks Rank
ExxonMobil currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are Natural Gas Services Group Inc. NGS, Matrix Service Co. MTRX and ReneSola Ltd SOL. Each of these stocks sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
EXXON MOBIL CRP (XOM): Free Stock Analysis Report
MATRIX SERVICE (MTRX): Free Stock Analysis Report
RENESOLA LT-ADR (SOL): Free Stock Analysis Report
NATURAL GAS SVC (NGS): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
