Exxon Mobil expects Q3 profits to be hurt by low oil prices

(Reuters) – A slump in oil prices likely cut Exxon Mobil’s third-quarter upstream earnings by $600 million to $1 billion, the oil major said in a regulatory filing on Thursday.

Oil prices fell 17 percent in the third quarter, the biggest quarterly drop in a year, on concerns about the outlook for global oil demand. Brent futures settled at $71.77 a barrel on the last trading day of the quarter.

The company, in its earnings snapshot, indicated that weaker refining margins during the quarter would also hurt profits by up to $1 billion. Global fuel markets have been hit by weaker consumer and industrial demand, particularly in China, where economic growth is slowing and the use of electric vehicles is on the rise.

Exxon shares closed at $122.58 each Thursday. They were up just 1 cent in after-hours trading.

Exxon posted $7.07 billion in upstream revenue for the second quarter and net profit of $9.1 billion in the year-ago third quarter, or $2.25 per share.

Analysts expect the industry giant to post adjusted earnings of $1.97 per share in the third quarter, according to estimates compiled by LSEG.

(Reporting by Vallari Srivastava in Bengaluru and Liz Hampton in Denver; Editing by Tasim Zahid, Alan Barona and David Gregorio)