Refining profits take a larger role in ExxonMobil and Chevron earnings
Strong refinery results add another layer to the oil majors' third-quarter reports.
ExxonMobil and Chevron reported sharply higher third-quarter profits on Friday, with refining earnings playing a larger role alongside oil and gas production. Reuters and CNBC both described a surge in the companies' refining businesses as fuel markets tightened.
ExxonMobil reported earnings of $15.4 billion, or $3.72 a share, and adjusted earnings of $17.5 billion, or $4.23 a share. Chevron reported earnings of $9.9 billion, or $5.06 a diluted share, and adjusted earnings of $10.4 billion, or $5.28 a diluted share. The companies' official releases support those figures.
The mix matters as much as the total
CNBC reported that Exxon's refining business earned about $7.2 billion in the quarter, compared with about $7.1 billion from production. Reuters also reported that refining had overtaken upstream earnings at Exxon. CNBC reported Chevron's refining earnings at $4.9 billion, compared with $5.7 billion from oil and gas production. Those Chevron segment figures are reported by CNBC and have not been independently confirmed by Ticker Den.
Reuters and CNBC linked the stronger refining results to higher margins and disruption to fuel-making capacity amid the conflicts in the Middle East and Ukraine. That is an explanation of the quarter's reported conditions, not a guarantee those margins will persist.
Reported and adjusted results are different measures
Reported earnings and adjusted earnings are not interchangeable. The companies exclude specified items from their adjusted measures, so comparisons should use the same measure and period.
The reports add detail to today's Toast & Tickers. For the separate shipping-risk backdrop, see the First Light oil report. A profitable quarter does not establish how either share price will perform from here.
