Exxon, Chevron Q3 profits jump on rising commodity prices
HOUSTON (Reuters) — ExxonMobil Corp and Chevron Corp said on Friday their quarterly profits each jumped about 50%, helped by rising commodity prices and lower costs.
The results show improving cash generation at both companies and in the industry in general, as investors continued to push for capital discipline throughout the energy sector.
"Cash is king, more and more," said Brian Youngberg, an oil industry analyst with Edward Jones. "These companies are trying to be disciplined and show growth."
At both companies, though, the results also reflected their dependence on commodity price swings to boost results. Neither company hedges oil or natural gas production.
At Exxon, results beat expectations despite a drag from Hurricane Harvey, which shuttered many US Gulf Coast refineries during August.
Exxon's shares fell 1.7% to $82.12 in morning trading.
At Chevron, a writedown of its Bangladesh operations and a drop in US production weighed on results, which missed Wall Street expectations by a wide margin.
Chevron's shares dropped 3.5% to $114.30 in morning trading.
French rival Total SA posted a 29% jump in third-quarter net profit as project ramp-ups and new investments lifted production.
Reporting by Ernest Scheyder; Editing by Jeffrey Benkoe
Comments