ExxonMobil’s Refining Profits Are Set to Jump $4.5 Billion. Here’s What XOM Investors Need to Know.
Exxon is benefiting from having an integrated business.
ExxonMobil (XOM) is anticipating a significant increase of $4.5 billion in its earnings from its refining business in the upcoming third-quarter report. This substantial boost, more than double the earnings from its energy products segment in the second quarter, could be the result of strong refining margins. However, there are some mitigating factors to consider such as lower liquids prices, external impacts, and timing issues.
Despite these challenges, adjustments for scheduled maintenance and having more days in the quarter are expected to offset most of the headwinds, with a positive impact of $300 million. The company is projected to declare an adjusted earnings of about $15.1 billion for the quarter, up from $14.7 billion in the previous quarter. ExxonMobil's integrated business model, which includes upstream oil and gas operations, midstream logistics, and downstream refining and chemicals, has empowered it to deliver more resilient earnings compared to pure-play E&P companies.
This model has also enabled the company to maintain a strong dividend record, raising it for an industry-leading 43 consecutive years.
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