ExxonMobil Corporation (NYSE: XOM) is scheduled to report third quarter 2019 earnings results on Friday, November 1, before the market opens. Analysts estimate the company will report earnings of $0.67 per share, reflecting a decrease of over 50% from the prior-year period. Sales are also expected to drop 15% year-over-year to $64.7 billion.
The company’s quarterly results are expected to be negatively impacted by the drop in oil and natural gas prices. Along with the falling prices, the weak demand for crude and the trade tensions between the US and China are also expected to take a toll on the results.
The profits in the upstream and downstream divisions are estimated to see a decline in the third quarter. This could take a toll on the company’s bottom line. Last quarter, profits in both segments were hurt by lower prices, higher expenses as well as increased downtime and maintenance.
Last month, Exxon announced the sale of its upstream operations in Norway to Var Energi AS for $4.5 billion. This is part of the company’s plans to divest around $15 billion in non-strategic assets by 2021.
Exxon is also facing trial on grounds of misleading investors on the costs related to climate change regulations. This brings up the possibility of the company facing additional expenses going forward depending on the outcome of the case.
In the second quarter of 2019, ExxonMobil beat profit expectations despite a 21% dip in earnings to $0.73 per share due to weakness in the downstream and chemical divisions. Revenues fell 6% to $69 billion.
ExxonMobil’s shares have dropped 10% in the past three months. The stock was down 1.3% in mid-day trade on Wednesday.
Exxon’s competitor Chevron Corporation (NYSE: CVX) is also scheduled to report third quarter 2019 earnings on Friday.
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