Exxon slide puts Chevron and BP profit forecasts and refining weight in focus
Material presented to investors after the third quarter balance sheet brings together forecasts from Exxon, Chevron and BP at a time of heavy weight in refining.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM MARKETWATCH · 2 MIN
A slide presented by ExxonMobil to investors, shortly after the release of third-quarter earnings, became a topic of discussion among industry analysts. According to MarketWatch, the material deals with profit forecasts from Exxon, Chevron and BP.
According to the same publication, the graph would serve to explain the financial situation of integrated oil companies, companies that operate in more than one stage of the oil chain. For investors who follow the sector, this type of material is usually one of the main sources for understanding how the company sees its own performance.
Investing.com points out that Exxon and Chevron's profits are linked to the increase in refining. According to the same vehicle, this expansion in refining was attributed to the war, which puts the topic at the center of reading about the sustainability of these results.
The point at stake is how much of this performance depends on a cyclical factor and how much reflects the companies' structural gains. Answering this question requires looking at each company's forecasts, and not just the quarter's results.
From a free market perspective, prices and margins in times of crisis tend to reflect supply and demand of the period, and not necessarily a new normality. This reading helps to separate what is extraordinary profit from what can be maintained over time.
This report does not include the values projected on the slide, which depend on the original material. Without these numbers, the analysis is restricted to the facts of the presentation and the explanations given by the sources consulted.
What changes for the investor
For those who follow shares in the sector, the focus tends to be on the durability of refining margins. If the advance of this segment is associated with an exceptional scenario, investors' reading may become more cautious regarding the continuity of profits, and the forecasts presented by these companies gain weight in the evaluation. This article does not recommend buying or selling securities and does not project prices.
Automatically translated from Portuguese.
