ExxonMobil Q3 Profits Halve

US major ExxonMobil reported November 1 estimated third quarter 2019 earnings of $3.17bn, a half of last year's $6.14bn. This year's result included a favourable tax-related identified item of about $300mn. Capital and exploration expenditures were $7.7bn, including key investments in the Permian Basin.

Oil-equivalent production rose 3% from the third quarter of 2018, to 3.9mn barrels/day. Excluding entitlement effects and divestments, liquids production increased 4% driven by Permian Basin growth, while natural gas volumes increased 1%, or by 44,000 ft³/d. The growth would have been greater but for longer downtime and divestments, it said.

CEO Darren Woods said growth in the Permian continued to drive increased liquids production and the company was  ahead of schedule for first oil in Guyana. The competitiveness of its portfolio was further enhanced with the divestment of non-strategic assets, reaching almost a third of the 2021 objective of $15bn, he said. The company sold Norwegian assets to Var Energy for $4.5bn and will book a gain of $3.5bn this quarter on completion.