ExxonMobil’s Q3 net income jumps to $15.4 billion on refining strength
ExxonMobil reported third-quarter net income of $15.4 billion, more than double the figure from a year earlier, as Gulf Coast refineries ran flat out and diesel margins stayed strong even though crude prices softened.
Per-share earnings came in at $3.72, while the adjusted figure of $4.23 cleared the $4.08 Wall Street had penciled in. Adjusted net income reached $17.5 billion, placing the quarter among the company’s best ever.
Most of the improvement traced back to fuel production rather than crude extraction. The energy products unit posted adjusted profit of $9.05 billion, more than twice the $4.1 billion booked in the prior quarter, as US Gulf Coast plants operated at maximum capacity and churned out their second-largest diesel volumes on record.
Fighting in Iran and Ukrainian strikes against Russian refining sites have knocked out roughly one-tenth of the world’s refining capacity, squeezing global diesel availability and boosting margins for facilities still in operation. Exxon has also built up its own fuel-making capability: Gulf Coast distillate output has climbed about 40% since 2019, aided by a $2 billion upgrade at its Beaumont refinery that brought an extra 250,000 barrels a day of processing capability online in 2023.
The company’s upstream arm had a softer showing, with adjusted earnings sliding to $7.3 billion from $9.2 billion the previous quarter as oil prices pulled back. Output held steady around 4.5 million barrels of oil equivalent daily.
Operating cash flow reached $25.7 billion, with $9.4 billion returned to shareholders, of which $5.1 billion went toward buybacks. Exxon lifted its dividend for a 44th consecutive year and laid out plans for an additional $20 billion in repurchases during 2027.
The strength of Exxon’s refining results points to a tight worldwide diesel market tied to lost processing capacity in the Middle East and Russia — a situation that could keep fuel prices and refining margins elevated even as crude softens, with knock-on effects for energy equities and broader input costs.
Sources: OilPrice.com; OilPrice.com