Exxon Mobil’s third quarter profit has declined compared with last year when the oil giant put up record numbers due to soaring crude prices – but net income was up 15% compared with the previous quarter.
It also raised its quarterly dividend.
Lofty crude prices have fuelled a shopping spree this year as Exxon acquired pipeline operator Denbury, the beneficiary of changes in US climate policy, for 4.9 billion dollars (£4.04 billion) in July, and then a few weeks ago said it would buy Pioneer for 60 billion dollars (£49.5 billion).
Exxon is not alone. Earlier this week, Chevron said it would spend more than 50 billion dollars (£41.3 billion) to acquire Hess.
Exxon Mobil earned 9.07 billion dollars (£7.49 billion), or 2.25 dollars per share in the period. That compares with 19.66 billion dollars (£16.24 billion), or 4.68 dollars per share, a year earlier.
Removing certain items, earnings were 2.27 dollars per share.
Analysts polled by Zacks Investment Research predicted higher earnings of 2.36 dollars per share, but Exxon does not adjust its reported results based on one-time events such as asset sales, as most companies do.
Revenue slipped to 90.76 billion dollars (£74.96 billion) from 112.07 billion dollars (£92.58 billion), but still topped Wall Street’s estimate of 89.29 billion dollars (£73.76 billion).
Production dipped 0.8% to 3,688 thousand oil-equivalent barrels per day.
Exxon said it delivered its best ever third-quarter global refinery throughput at 4.2 million barrels per day.
Chairman and chief executive Darren Woods said: “We delivered another quarter of strong operational performance, earnings and cash flows, adding nearly 80,000 net oil-equivalent barrels per day to support global supply.”
Exxon’s results come just a few weeks after announcing that it would acquire Pioneer Natural Resources for nearly 60 billion dollars (£49.5 billion).
It is the company’s largest buyout since acquiring Mobil two decades ago. The deal with Pioneer Natural vastly expands Exxon’s presence in the Permian Basin, a massive oilfield that straddles the border between Texas and New Mexico.
The company posted unprecedented profits last year of 55.7 billion dollars (£46.01 billion), breezing past its previous record of 45.22 billion dollars (£37.35 billion) in 2008 when oil prices hit record highs.
Large acquisitions within the energy sector continue to be made this year as oil prices surge, with Chevron saying on Monday that it is buying Hess for 53 billion dollars (£43.7 billion).
Crude prices rose sharply in early 2022 with Russia’s invasion of Ukraine and are hovering around 90 dollars per barrel after ticking another 9% higher this year. That has made big drillers cash rich, and they are looking for places to invest.
Oil markets are being stretched by cutbacks in oil production from Saudi Arabia and Russia, and now, a war between Israel and Hamas runs the risk of igniting a broader conflict in the Middle East.
While attacks on Israel do not disrupt global oil supply, according to an analysis by the US Energy Information Administration, “they raise the potential for oil supply disruptions and higher oil prices”.
Exxon also announced on Friday that it raised its fourth-quarter dividend to 95 cents per share from 91 cents per share.
Shares were up slightly before the opening bell.
