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Exxon, Chevron Q3 profits jump on rising commodity prices, lower costs

At both companies, the results reflected their dependence on commodity price swings to boost results

Reuters  |  Houston 

Exxon Mobil Corp. Photo: Reuters
Exxon Mobil Corp. Photo: Reuters

Mobil Corp and Corp, two of the world's largest oil producers, said on Friday their quarterly profits each jumped about 50 percent, helped by rising commodity prices and lower costs.

The results show improving cash generation at both and in the industry in general, as investors continued to push for capital discipline throughout the energy sector.

"Cash is king, more and more," said Brian Youngberg, an oil industry analyst with Edward Jones. "These are trying to be disciplined and show growth."

At both companies, though, the results also reflected their dependence on commodity price swings to boost results.

Neither company hedges oil or natural gas production.

At Exxon, results beat expectations despite a drag from Hurricane Harvey, which shuttered many US Gulf Coast refineries during August.

Exxon's shares fell 1.7 percent to $82.12 in morning trading.

At Chevron, a write-down of its Bangladesh operations and a drop in U. S. production weighed on results, which missed Wall Street expectations by a wide margin.

Chevron's shares dropped 3.5 percent to $114.30 in morning trading.

French rival Total SA posted a 29 percent jump in third-quarter net profit as project ramp-ups and new investments lifted production.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, October 27 2017. 19:54 IST