ExxonMobil profits double to US$15.4bil on oil price surge

ExxonMobil announced a remarkable surge in third-quarter profits, reaching US$15.4 billion, more than double the US$7.5 billion recorded a year earlier. This impressive financial performance can be attributed to a combination of higher oil prices and improved refining margins, both direct consequences of the escalating US-Iran conflict.

Oil prices averaged around US$85 per barrel during the period, a significant increase of about a third compared to the previous quarter. The results further highlight the seismic impact of the Middle East unrest on petroleum companies' financial health, a trend observed in other companies operating in the sector.

A major contributor to ExxonMobil's financial boost was its refining business, where the company saw a substantial increase in refining margins to US$50.3 per barrel. This marked nearly three times the profit margin from the same period last year, as the company ramped up the production of diesel and other petroleum products, seeking to capitalize on the tightened supply situation.

The disruptions in refining capacity in Russia and the Middle East, with roughly 10% of global capacity offline, further exacerbated the situation. North American refineries, despite maintaining high operating rates, were unable to fully compensate for the reduced global refining capacity.

ExxonMobil's efforts to boost output were evident in its 100% crude unit utilization at US Gulf Coast refineries. The company's upstream operations also contributed to the profit surge, producing 4.5 million barrels per day of oil equivalent, a six percent decline from the year-ago level.

However, the company's upstream operations continue to grapple with the aftermath of the Middle East upheaval, incurring a reported US$2.9 billion loss due to damaged petroleum sites. Despite these challenges, ExxonMobil's shares rose by 2% in pre-market trading.