ExxonMobil and Chevron beat estimates as oil refining profits soar
About 10% of the world’s fuel-making capacity remains sidelined due to conflicts in the Middle East, Ukraine and Russia
ExxonMobil and Chevron surpassed profit expectations as conflicts in the Middle East, Ukraine, and Russia disrupted energy markets, propelling refining profits to record highs. ExxonMobil's adjusted third-quarter earnings were $4.23 per share, 10 cents above analyst estimates, while Chevron's earnings were $5.28 per share, 35 cents higher than expectations.
The rising cost of fuel is benefiting oil supermajors but causing discontent ahead of US midterm elections. International oil prices have surged nearly 60% since the US and Israel attacked Iran in late February, exacerbating the refining bottleneck. ExxonMobil's refining division generated a record $9.05 billion in the third quarter, five times more than a year earlier, while Chevron's refining arm reported $4.93 billion in profit, the highest on record.
The disruptions have prompted European supermajors to boost repurchases to match ExxonMobil's. Despite President Trump's assurances that fuel prices would soon decline, the Iran conflict's ninth month continues to strain global energy supplies. ExxonMobil has raised dividends for the 44th consecutive year and pledged to maintain $20 billion in annual buybacks.
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