Rising Natural Gas Prices Will Boost Exxon Third Quarter Profits

Natural gas prices in the United States have more than doubled this year and oil prices have risen 52% as demand for energy recovers from the COVID-19 pandemic.

Exxon has also cut costs and laid off staff following a historic loss in 2020. Falling costs associated with the recent oil and gas rebound have resulted in a sharp increase in profits.

Natural gas prices are expected to give the US oil producer the biggest increase in operating profit in the quarter, the company said in a business file. Profit for natural could rise between $ 500 million and $ 900 million this quarter from last, he said.

On Thursday, natural gas prices in the United States were trading at nearly $ 6 per million British Thermal units.

Healthier refining margins could add $ 500 million to $ 700 million in operating profits this quarter. Exxon’s quarterly results will be released on October 29.

Chemical margins, on the other hand, could reduce operating income by $ 200 million to $ 400 million in the quarter, the company said on the file.

He also said that the unsettled derivatives could reduce operating income from oil and gas production by $ 100 million to $ 500 million during the period.

Last year, the company suffered a third quarter loss of $ 680 million due to lower oil prices and lower production volumes.

Exxon stock closed Thursday at $ 58.82, up 43% this year.

(Reporting by Sabrina Valle in Houston and Uday Sampath in Bangalore; Editing by Shounak Dasgupta and Matthew Lewis)

By Sabrina Valle

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