Exxon, Chevron third-quarter profits jump on rising commodity prices

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HOUSTON (Reuters) – Exxon Mobil Corp (XOM.N) and Chevron Corp (CVX.N), two of the world’s largest oil producers, said on Friday their quarterly profits each jumped about 50 percent, helped by rising commodity prices and lower costs.

FILE PHOTO: An airplane comes in for a landing above an Exxon sign at a gas station in the Chicago suburb of Norridge, Illinois, U.S., October 27, 2016. REUTERS/Jim Young/File Photo

The results show improving cash generation at both companies and in the industry in general, as investors continued to push for capital discipline throughout the energy sector.

“Cash is king, more and more,” said Brian Youngberg, an oil industry analyst with Edward Jones. “These companies are trying to be disciplined and show growth.”

At both companies, though, the results also reflected their dependence on commodity price swings to boost results. Neither company hedges oil or natural gas production.

FILE PHOTO – The logo of Dow Jones Industrial Average stock market index listed company Chevron (CVX) is seen in Los Angeles, California, United States, April 12, 2016. REUTERS/Lucy Nicholson/File Photo

At Exxon, results beat expectations despite a drag from Hurricane Harvey, which shuttered many U.S. Gulf Coast refineries during August.

Exxon’s shares fell 1.7 percent to $82.12 in morning trading.

At Chevron, a writedown of its Bangladesh operations and a drop in U.S. production weighed on results, which missed Wall Street expectations by a wide margin.

Chevron’s shares dropped 3.5 percent to $114.30 in morning trading.

French rival Total SA (TOTF.PA) posted a 29 percent jump in third-quarter net profit as project ramp-ups and new investments lifted production.

Reporting by Ernest Scheyder; Editing by Jeffrey Benkoe

Our Standards:The Thomson Reuters Trust Principles.

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