Exxon Mobil’s shares fell after the company warned its fourth-quarter earnings will take a hit from lower crude prices and narrowing refining margins during the final three months of 2024.
Oil prices lowered earnings at Exxon’s production division by about $700 million, while refining margins reduced its profit by a further $500 million compared with the third quarter, Exxon said in a statement Tuesday. Natural gas prices provided a lift of about $200 million while chemical margins shrank.
The stock price dropped 1.7 percent Wednesday. Shell also disclosed a fourth-quarter dip in earnings earlier Wednesday.
Exxon’s update implies fourth-quarter earnings per share will be about 17 percent lower than analysts’ current estimates, Nitin Kumar, an analyst at Mizuho, wrote in a note. In particular, Exxon faces “significant headwinds” at its refining division, RBC Capital Markets analyst Biraj Borkhataria wrote. The company has the biggest refining footprint among its peers.
