ExxonMobil Profit Swells on High Energy Costs

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ExxonMobil Profit Swells on High Energy Costs

IRVING, Texas -- ExxonMobil’s third-quarter profit surged, buoyed by higher crude oil and natural gas prices, even as hurricanes hampered production, reported the Associated Press.

Net income ballooned to $9.92 billion, or $1.58 a share, from $5.68 billion, or 88 cents a share, a year ago. Excluding certain items, earnings were $8.3 billion, or $1.32 a share, vs. $6.23 billion, or 96 cents a share.

Analysts polled by Thomson Financial, on average, predicted earnings excluding items of $1.38 a share, according to AP.

Revenue grew to $100.72 billion from $76.38 billion.

The hurricanes slashed U.S. production volumes by 50,000 barrels of oil equivalent a day, down nearly 5 percent, costing the company $45 million before taxes, ExxonMobil said. Total daily production slipped to 2.45 million barrels of oil equivalent from 2.51 million barrels, according to the report.

"Following the hurricanes, ExxonMobil maximized gasoline production from all of our refineries which were operating in the U.S., and increased imports from overseas affiliates to meet U.S. demand," Chairman Lee Raymond told AP.

Earnings from U.S. upstream operations increased by $498 million to $1.67 billion, while U.S. downstream earnings jumped $548 million to $1.11 billion. Income from the company's chemicals segment declined $537 million to $472 million, as raw materials costs squeezed margins, reported AP.

The company cautioned that reduced volumes and higher costs will also hurt the fourth quarter, according to the AP report.