03:36 PM EDT, 10/01/2024 (MT Newswires) -- Exxon Mobil ( XOM ) is likely to see a decrease in earnings compared with the previous quarter, primarily due to lower crude oil prices and domestic refining margins, UBS Securities said in a note emailed Tuesday.

Exxon Mobil's ( XOM ) quarterly earnings report is expected this week, UBS said, adding that "We forecast [Q3] EPS of $1.84 vs. Cons. $2.01. This compares to $2.14 in [Q2], with the decrease mainly driven by declining crude oil prices and domestic refining margins."

UBS forecasts Upstream net income at $6.2 billion, down $850 million quarter-over-quarter, on total volumes of 4.56 million barrels of oil equivalent per day, slightly above Wall Street's 4.53 mmboepd, primarily due to weaker crude oil prices, the note said.

Net income for Energy products is projected at $733 million, down from $946 million in Q2 due to lower domestic refining margins, while chemical products net income is forecast at $796 million, up $17 million quarter-over-quarter, driven by higher chemical margins but impacted by a $30 million maintenance headwind, UBS said.

UBS also projects specialty products net income at $763 million, up $12 million quarter-over-quarter, driven by 2% volume growth, while Exxon Mobil ( XOM ) expects "turnaround impacts" in the segment to increase by nearly $5 million, the note said.

UBS has a buy rating on Exxon Mobil ( XOM ) with a 12-month price target of $149.

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