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.
Also read: ExxonMobil Q2 2019 Earnings Conference Call Transcript
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.