Upcoming AWS Coverage on Statoil Post-Earnings Results
LONDON, UK / ACCESSWIRE / November 8, 2016 / Active Wall St. announces its post-earnings coverage on Exxon Mobil Corp. (NYSE: XOM). The company reported its fiscal third quarter 2016 earnings results on October 27th, 2016. The largest U.S. oil company earnings and revenue fell from the previous year's quarter attributed to lower margins and commodity prices, while it also slashed capital expenditure by 45%. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Exxon Mobil's competitors within the Major Integrated Oil & Gas space, Statoil ASA (NYSE: STO), reported its Q3 2016 results on October 27, 2016. AWS will be initiating a research report on Statoil in the coming days.
Today, AWS is promoting its earnings coverage on XOM; touching on stock like STO. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=XOM
http://www.activewallst.com/registration-3/?symbol=STO
Earnings Reviewed
For the three months ended on September 30th, 2016, Exxon reported that earnings fell to $2.65 billion, or $0.63 per diluted share, from $4.24 billion, or $1.01 a share in the year earlier quarter, on lower refining margins and commodity prices. The earnings results outperformed analysts' expectations of earnings of $0.58 per share. The company's revenue slipped 13% during the reported quarter to $58.68 billion, below analysts' forecasts of $63.85 billion.
Segment Results
During Q3 2016, Exxon's profit in the exploration and production, or upstream business, fell 16% to $620 million. Lower liquids and gas realizations decreased earnings by $880 million, while volume and mix effects increased earnings by $80 million.
Volumes for the reported quarter declined 3% to 3.8 million oil-equivalent barrels per day compared with a year ago, due to unplanned downtime, primarily in Nigeria, and field decline partially offset by increased production from recent project start-ups. Liquids production totaled 2.2 million barrels per day, down 120,000 barrels per day from Q3 2015. Natural gas production was 9.6 billion cubic feet per day, up 77 million cubic feet per day from Q3 2015 as project start-ups more than offset field decline and divestment impacts. In the U.S., the upstream division widened its loss to $477 million from $442 million a year earlier. Non-U.S. Upstream earnings were $1.1 billion, down $703 million from the prior year's period.
During the reported quarter, Exxon was also was hurt by declining profit in the downstream division, which came in at $1.2 billion, down $804 million from Q3 2015. Weaker margins, mainly in refining, decreased earnings by $1.6 billion while favorable volume and mix effects increased earnings by $170 million. During the reported quarter, Exxon recorded Petroleum product sales of 5.6 million barrels per day, down 203,000 barrels per day lower than the prior year, mainly due to divestment of the Torrance, California, and Chalmette, Louisiana, refineries. In Q3 2016, Exxon's earnings from the U.S. Downstream were $225 million, down $262 million from Q3 2015. Non-U.S. Downstream earnings of $1 billion were $542 million lower than the prior year which had previously been a boon amid lower prices for oil and gas.
In Q3 2016, Exxon reported Chemical earnings of $1.2 billion, lower by $56 million from Q3 2015. Margins decreased earnings by $10 million. Volume and mix effects increased earnings by $20 million. During the reported quarter, prime product sales of 6.1 million metric tons were 51,000 metric tons higher than the prior year's third quarter.
Financials
During Q3 2016, Exxon's cash flow from operations and asset sales was $6.3 billion, including proceeds associated with asset sales of $1 billion. The corporation slashed its Capital and exploration expenditures by 45% to $4.2 billion, from the year ago period. Exxon distributed $3.1 billion in dividends to shareholders, while it increased its dividends per share by 2.7% to $0.75 from the prior year's period.
Looking Ahead
Exxon stated that if going forward oil prices remained at the 2016 average, the company will not be able to qualify as much as 4.6 billion barrels of proved reserves under regulatory rules.
Stock Performance
Exxon Mobil's stock rose by 2.25%, closing Monday's session at $85.45 on volume of 13.49 million shares, which was higher than the 3 months average volume of 10.40 million shares. The company's shares gained 12.50% since the beginning of the year. Additionally, the stock has advanced 4.72% in the last twelve months. The company's shares are trading a PE ratio of 39.95 and have a dividend yield of 3.51%.
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