Exxon Mobile expects falling profits for Q3
The Coronavirus crisis has also impacted the largest oil company in the world.
Exxon Mobil Corporation (NYSE: XOM) anticipates a larger loss in Q3 2020 as it grapples with a slump in the energy industry as a result of the coronavirus pandemic. According to Exxon Mobil, factors such as lower refining margins, a collapse in gas and oil prices, and declining sales volumes are expected to result in a sharper decline in earnings in the third quarter. Based on analyst and company inputs, the loss could increase to 68 cents from a profit of 7 cents. The loss is much larger compared to the analysts' estimates of a loss of 7 cents. If Exxon Mobil continues to post another big loss in Q3 2020, it will be the third straight loss in its 36-year history. Exxon Mobil's stock trades at $ 33.66, down 2%. Exxon Mobil expects production and exploration revenues in the order of $ 1.4 billion and $ 1.8 billion if crude oil prices are higher than in Q3 2020 than Q2. The prevailing weak gas prices are projected to increase revenues by up to Reduce $ 500 million. The weak margins are expected to drag the refining business down, pushing revenues up to $ 600 million. The refining sector will also suffer from the logistical differences. However, Exxon Mobil expects the chemical business to increase by $ 200 million. Jennifer Rowland, senior analyst at EJER (Edward Jones Equity Research), said Exxon Mobil expects to see lower cash flow in Q3 2020 due to the challenging environment. Exxon Mobil will release Q3 2020 results on October 30, 2020. Oil prices fell following reports from President Donald Trump, who tested positive for the coronavirus. Brent crude oil prices fell to $ 39.12 on Friday (down 4.4%). Exxon Mobil shares are trading 2.8% lower ahead of market opening. Independent Advisor Alliance CIO Chris Zaccarelli said markets and government were functioning normally. He advised investors not to panic during this difficult period. The ongoing coronavirus is a threat to the markets and also to the economy. NextEra Energy, a Florida-based energy and utilities company, outperformed Exxon Mobil on market capitalization.