US oil majors ExxonMobil could slip into a larger-than-anticipated loss in the July-September quarter as it struggles to cope with the impact of the coronavirus pandemic. The company said weaker refining margins, sales volumes, as well as oil and gas prices, could impact its earnings in the quarter, suggesting its earnings could range between a loss of 68 cents and a profit of 7 cents, compared to analysts estimates of a 7 cent loss. The loss in the third quarter will mark the first time the company recorded losses for three straight quarters in at least 36 years. In July, Exxon pledged to make significant expenditure reductions to cope with the sharp fall in energy prices. The company’s shares shed 2% to $33.66 on Thursday.
Exxon expects its upstream exploration and production business to generate $1.4 billion to $1.8 billion earnings in the third quarter thanks to higher oil prices. However, lower gas prices could offset the division’s gains by approximately $500 million. Refining operations are expected to suffer from weak margins that might knock its earnings off by $200 million to $600 million. Differentials in Exxon’s logistics business are expected to be as much as $200 million. Meanwhile, the chemical segment is estimated to generate $200 million in earnings.
