Exxon Reports Better Than Expected Fiscal 2017 Q3 Results

ExxonMobilDespite the negative impact of hurricanes Irma and Harvey, Exxon Mobil Corporation (NYSE: XOM) which is regarded as the world’s largest listed oil and gas company has reported better than expected results in the 3rd quarter of the fiscal year 2017.

There was a significant improvement in its performance all due to rise in the average sale price of crude oil and less operating costs.

After the Q3 results were announced, there was only 50 cents rise in the share prices of the company. But, we believe that the share prices will rise in due course of time and the reason for the same is discussed below.

This Irving, Texas-based company has reported revenues to the tune of $66.165 billion as compared to $58.677 billion during the same period last year. Analysts were hoping that Exxon would be registering revenues not more than $63.39 billion.

For the quarter ending in September 2017, the company had posted net income of $3.970 billion as compared to $2.650 billion during September 2016. The Q3 2017 on share price basis has increased from $0.63 to $0.93 and has easily surpassed the estimates of analysts of $0.86 per share. Had it not been for the hurricanes Irma and Harvey, per share price of stocks of Exxon, would be $0.04 more. Due to these recent hurricanes, the company has shut down its refineries at Beaumont and Baytown in Texas.

ExxonMobil

The upstream sector has reported solid earnings of $1.60 billion; an increase of $947 million over the last year. The upstream sector production has also registered a growth of 2 percent from 2016 to 3.9 million barrels per day. The upstream sector involves the production of oil and gas.

The downstream sector of Exxon that looks after the crude oil refining has registered revenues worth $303 million on a yearly basis in net profit to $1.50 billion. The profits in this sector got boosted due to high commodities price. The chemical business of Exxon was able to post revenues of just $1.10 billion due to weak profit margins. It is interesting to note that the company was able to report profits of more than $1 billion across all the business sectors in the 3rd quarter.

Also, Exxon Mobil made its 5th oil and gas discovery in Guyana by capturing 12 offshore blocks in Brazil. There is 41% growth to $7.5 billion in operations cash flow.

Regarding strategic investment plans, the company is working on acquiring a chemical plant in Singapore and drilling rights in New Mexico and Permian Basin of Texas. This, in turn, would increase the resource base of Exxon of 6 billion barrels by 400 million BOE.

ExxonMobil Stock Price Nov 15th 2017

ExxonMobil Stock Price Nov 15th, 2017

On a technical level, the accumulation indicator shows bullishness in scrip. In addition to this, money flow index is above 50 reading mark. This clearly shows that the stocks of Exxon are on the uptrend.

Instead of buying stock in the cash market, traders are recommended to invest in a Call Option from any legitimate Binary Options broker. They should select the trade expiry on November 23, 2017. Further, traders are advised to enter the market when the stock is trading around $82.

Rich Archer

Rich Archer

Hi, my name is Rich Archer. I am living in London. Welcome to Binary Manual. Reach to Binary Options broker reviews and market news here.


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