U.S. oil major ExxonMobil recorded an increase in its third quarter 2017 profit and revenues due to higher oil prices.
ExxonMobil on Friday posted its third quarter 2017 earnings of $3.97 billion compared to $2.65 billion in the prior-year quarter as commodity prices improved and performance in the Upstream and Downstream strengthened.
Upstream earnings were $1.6 billion in the third quarter of 2017, up $947 million from the third quarter of 2016. Higher liquids and gas realizations increased earnings by $860 million. Higher volume and mix effects increased earnings by $20 million. All other items increased earnings by $70 million as lower expenses were partly offset by unfavorable foreign exchange effects.
Hurricane Harvey reduced the company’s earnings by an estimated $160 million.
The oil major recorded $66 billion in revenues during the third quarter 2017, an increase compared to $58.7 billion in the prior-year quarter.
Building on its recent success in deepwater exploration, such as the Turbot discovery in Guyana, ExxonMobil added 12 offshore blocks in Brazil, capturing acreage with high resource potential and competitive fiscal terms.
Oil-equivalent production was 3.9 million barrels per day, up 2 percent from the prior year.
Liquids production totaled 2.3 million barrels per day, up 69,000 barrels per day as lower downtime and higher project volumes were partly offset by field decline. Natural gas production was 9.6 billion cubic feet per day, down 16 million cubic feet per day from 2016 as field decline and lower demand were partly offset by project ramp-up, primarily in Australia, and work programs.
During the third quarter 2017 period, capital and exploration expenditures were $5.9 billion compared to $4.2 billion in the prior-year period.
Offshore Energy Today Staff