ExxonMobil's (XOM) Downstream Margins To Boost Q2 Earnings
Zacks Investment Research | Jul 01, 2019 09:29PM ET
Exxon Mobil Corporation (NYSE:XOM) recently provided an update on second-quarter 2019 earnings, which are expected to get a boost from refining margins. The company is expected to release second-quarter results on Jul 26, 2019.
Upstream
The largest publicly traded energy company expects crude price improvement to boost second-quarter profit by $400-$600 million sequentially. First-quarter 2019 earnings from the Upstream business came in at almost $3 billion. However, tumble of natural gas prices to multi-year lows — attributed to middling demand — can offset the positives from liquid price improvement. Notably, in the June quarter of 2018, it recorded total profit of $3,040 million, which was primarily supported by higher commodity prices.
Downstream
The Downstream segment, which incurred a loss of $256 million in first-quarter 2019, is expected to witness a $300-$400 million improvement in margins in the second quarter. The company recorded $724 million in profits from the segment in the year-ago quarter.
Chemicals
ExxonMobil expects weaker margins in the Chemicals segment to affect second-quarter profit levels in the range of $100-$300 million. Markedly, first-quarter profit came in at $518 million. Scheduled maintenance activities for the chemical business will likely have a negative impact on second-quarter earnings. In the year-ago period, the company recorded earnings of $890 million.
Earnings Estimates
The company is expected to report second-quarter earnings of 97 cents, which indicates a year-over-year increase of 5.4%. Notably, ExxonMobil beat estimates twice in the trailing four quarters, with a positive earnings surprise of 2.5%.
Exxon Mobil Corporation Price and EPS Surprise
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