Exxon sees higher refining margins adding $4.5B to Q3 earnings
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ExxonMobil (XOM) said Friday that higher refining margins during Q3 could boost its downstream profit by ~$4.5B, according to an 8-K filing, on top of the $4.1B it earned from refining in Q2.
Analysts are expecting Exxon's (XOM) Q3 refining earnings to reach ~$7.8B, according to data compiled by Bloomberg, which would be the company's best quarter on record; the company is scheduled to report its full quarterly results on October 30.
The Gulf Coast 3-2-1 crack spread, a benchmark of U.S. refining profitability, rose 28% Q/Q and touched a record $72.64 on September 22.
Exxon's (XOM) surging profits will be partly offset by lower oil prices that likely reduced profits by ~$1.3B, according to the filing, which also said the company expects to take a $2.5B hit from "timing effects," or derivative positions linked to cargoes that have been shipped but not yet delivered.
The company also indicated that there were no volume-related disruptions during the quarter caused by the Iran war.
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