ExxonMobil to lose profit due to falling energy prices
2023.01.05 08:56
ExxonMobil to lose profit due to falling energy prices
Budrigannews.com – ExxonMobil, Inc. exhibited yesterday that it is prepared to generate yet another substantial profit in the fourth quarter. The gasoline and diesel division reported a profit of approximately $4.9 billion in 2022, with Exxon anticipating operating profits of $15.4 billion and full-year profits of approximately $58 billion. However, Exxon did warn investors that profits are declining compared to the record profits of previous quarters, primarily as a result of lower prices for oil and gas.
Overall, Exxon’s business update indicates a Q4 beat because EPS should come in at $3.44, beating the FactSet consensus of $3.33. The impact from lower gas prices is estimated to be $2.4 billion, while oil accounts for up to $1.7 billion.
Despite the significant outperformance in 2022, Goldman Sachs analysts maintained a Buy rating on XOM stock.
In a client note, the analysts stated, “Despite outperformance in 2022, we remain constructive on XOM into 2023 given our view (a) the stock offers a differentiated upstream project queue and (b) continues to experience a unique business transformation driving FCF breakevens lower and allowing for continued capital returns improvement — where we also see 12% total return to XOM on our 12-month $116 price target at our $90/bbl Brent mid-cycle view.”
Yesterday, the price of Exxon stock ended at $106.82.
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