ExxonMobil Corp.’s (XOM) third-quarter profit fell by more than half of its record high last year on a decline in oil and gas price realizations.
Although the company’s refineries had the highest throughput for any third quarter since 1999 and also boosted its quarterly dividend.
The energy giant earned $9.07 billion in the period, a 54% drop from the same quarter in 2022. Earnings per share (EPS) came in at $2.27, below analysts’ forecasts. Revenue slid 19% to $90.76 billion, according to Investopedia.
ExxonMobil said that the profit slump was driven by a nearly 60% cut in natural gas price realizations and 14% decrease in oil price realizations. The company also reported a 69% plunge in earnings from its chemical products division because of higher feedstock prices and as industry supply outpaced demand. However, refinery throughput rose to 4.2 million barrels a day, the most since Exxon merged with Mobil 24 years ago.
Chief Executive Officer (CEO) Darren Woods said the company delivered “strong operational performance, earnings, and cash flows.” He added that ExxonMobil’s purchases in the quarter of Pioneer Natural Resources Co. (PXD) for $59.5 billion, and Denbury Inc. (DEN) for $4.9 billion “will strengthen our portfolio and position us to deliver profitable growth and attractive returns for many years to come.”
The company increased its quarterly dividend to 95 cents per share from 91 cents per share, noting it has raised its annual dividend for 41 consecutive years.
ExxonMobil shares declined more than 2% in early trading on Friday and were down 1% year-to-date.