ExxonMobil on Thursday said that higher natural gas prices would boost its third-quarter earnings by $1.5 billion compared to the second quarter. US spot natural gas prices have more than doubled since the start of the year to a seven-year high of $5.867 per MMBtu on Thursday. Meanwhile, oil prices have been up 52% to near $80 per barrel, driven by the post-lockdown economic recovery. Exxon has also cut costs and reduced jobs following a historic loss in 2020, which are expected to drive earnings further.
Exxon said profit from natural gas could increase by $500 million to $900 million this quarter over the previous three-month period. Stronger refining margins could also add between $500 million and $700 million in Q3 operating profits. On the other hand, chemical margins could lower operating profit by $200 million to $400 million in the quarter. The company posted a $680 million loss in Q3 2020 on falling oil prices and lower production volumes. It is due to release its quarterly results on October 29.
