Exxon quarterly profit growth flatlines amid weaker Natural Gas price


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Exxon quarterly profit growth flatlines amid weaker Natural Gas price

On Monday, the 1st of July 2019, the American multinational oil and gas corporation headquartered in Irving, Texas, Exxon Mobil Corporation, operating as ExxonMobil, said that a lower natural gas price and weaker chemical earnings had overshadowed its robust earnings of crude and refining sections, pointing towards a flat trajectory on a quarter-on-quarter basis and a sharp downswing from a year earlier.

In a securities filing on Monday (July 1st), the US oil major had been quoted saying that the company was expecting a boost in the Q2 profit by $400 to $600 million, however, a natural gas price hovering near its multi-year low amid timid demands would likely to offset the corporation’s gains by an equal measure, while RBC Capital Market analysts wrote in a client note, “Magnitude of weakness across refining, chemicals and natural gas and the lack of sequential improvement, leaves us heading into another disappointing quarter for Exxon’s earnings momentum”.

Aside from that, the US oil major had also added that weaker earnings in its chemical business would cast further shadows on the company’s profitability, as it had been expecting a reduction of second quarter profit by $100 billion in its chemical business. Nonetheless, the company is due to release the quarterly earnings on July 26th.