Exxon profit rises 3 percent on refining

Buy XOM on beat? Not really says pro
Buy XOM on beat? Not really says pro   

ExxonMobil, the world's largest publicly traded oil company, on Friday reported a 3 percent increase in profit on improved results in its refining and chemicals businesses.

After the earnings announcement, the company's shares rose in premarket trading. (Get the latest quote here.)

The company posted third-quarter earnings of $1.89 per share, up from $1.79 a share in the year-earlier period.

Revenue decreased to $107.49 billion from $112.37 billion a year ago.

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Wall Street had forecast Exxon would report earnings per share of $1.71 on $105.51 billion in revenue, according to a consensus estimate from Thomson Reuters.

The company said it expects $3 billion in fourth-quarter share purchases to reduce the number of shares outstanding.

"Exxon Mobil's quarterly results demonstrate the strength of our integrated business model," Chief Executive Officer Rex Tillerson said in a statement.

Integration across the company's exploration and production, refining and chemicals businesses provides a competitive advantage regardless of market fluctuations, said Tillerson.

Oil and gas production fell 4.7 percent, the Irving, Texas company said. Exxon said it remained on track for full-year output of 4 million barrels oil equivalent per day (boed).

Profit in its refining business soared to $1.024 billion from $592 million a year earlier. Exxon's chemicals unit had a profit of $1.2 billion, up 17 percent from a year earlier.

Earnings in Exxon's exploration and production business fell 4.4 percent to $6.4 billion as lower crude oil prices took a toll.

Year to date, Exxon shares have dropped 7 percent amid a sharp decline in oil prices. Prices have dropped considerably because oil supplies have soared.

Reuters contributed to this report.