Exxon Mobil Shares Decline Due to Refining Profit Warning

Investing.com -- Shares of Exxon Mobil Corporation (NYSE:XOM) fell 1.2% on Wednesday following the company's warning of a decline in refining profits for the fourth quarter. The oil giant reported weak returns across its operations, reflecting a challenging environment characterized by pricing pressures and demand fluctuations in the industry.

Exxon Mobil expects its fourth-quarter earnings to be approximately $1.75 billion lower than the previous quarter. This anticipated decline reflects a broader profitability drop within the industry due to a decrease in crude oil refining and petroleum product sales.

The end of post-pandemic demand growth and the commencement of large-scale facilities globally have also negatively impacted refining margins. In the year-over-year performance comparison, Exxon's third-quarter profits decreased by 5% compared to the same period last year, while rival Chevron reported a more pronounced 21% decline.

Analysts from Wolfe Research commented, "We expect similar trends as major oil companies release trading updates - however, none are poised to support extraordinary dividend growth with an upcoming inflection point in free cash flow."