Exxon Mobil To See A Notable Drop In Its 2Q’16 Earnings Despite Moderate Recovery In Commodity Prices
Exxon Mobil (NYSE:XOM), the US-based integrated oil and gas company, is expected to release its June quarter 2016 financial results on 29th July 2016. [1] We anticipate a plunge in the oil major’s revenue as well as earnings due to the ongoing oil slump, partly offset by the sudden recovery in oil prices over the last three months.
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Since crude oil prices grew more than 35% over the last three months due to production disruptions in Canada, Nigeria, and Venezuela, we expect the company to report better price realizations for its upstream operations in the second quarter. However, the commodity prices were still significantly lower than the same quarter last year. Thus, we expect to see a notable decline in the company’s revenue as well as earnings.
Besides, Exxon Mobil has reportedly ((Exxon Tops Oil Search’s Bid For InterOil, 12th July 2016, www.reuters.com)) proposed an unsolicited bid to acquire InterOil Corporation (NYSE:IOC) on 30th June 2016, topping Oil Search’s (ASX:OSH) bid of $2.2 billion made in May of this year. InterOil is an oil and gas company with a sole focus in Papua New Guinea (PNG), where Exxon already has a strong presence. The exact details about Exxon’s offer are unknown. (Read our article – Who Will Acquire InterOil? – ExxonMobil Or Oil Search – for further details)
Have more questions about Exxon Mobil (NYSE:XOM)? See the links below:
- Who Will Acquire InterOil? – ExxonMobil Or Oil Search
- What’s Exxon Mobil’s Revenue & Earnings Breakdown In Terms of Different Products?
- What’s Exxon Mobil’s Fundamental Value Based On Expected 2016 Results?
- How Has Exxon Mobil’s Revenue Composition Changed In The Last Five Years?
- What Has Led To More Than 30% Decline In Exxon Mobil’s Revenues & EBITDA In The Last Five Years?
- By What Percentage Can Exxon Mobil’s Revenues Grow Over the Next Five Years?
- Why Crude Oil & NGLs Operations Are 2x As Valuable As Refined Petroleum Products Operations For Exxon Mobil?
- Why Is Exxon Mobil’s Crude Oil & NGL’s EBITDA Margin Greater Than Its Refined Products EBITDA Margin?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Exxon Mobil
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Notes:- ExxonMobil To Announce Its Second Quarter 2016 Results, www.exxonmobil.com [↩]