Exxon Mobil expects the sale of its Norwegian assets to support Q4 financial results

Exxon Mobil expects 3.6 billion USD from the sale of its Norwegian oil and gas assets, which will significantly increase its fourth-quarter results, according to documents filed with regulators.

Growth in the sale of Norwegian assets to Var Energi, whose majority shareholder is Italy’s Eni SpA, is expected to offset lower margins from the refining and chemicals business.

The Norwegian deal in September, part of Exxon’s earlier plan to sell non-strategic assets worth 15 billion USD by 2021, includes equity holdings in more than 20 cogeneration fields of about 150,000 barrels of oil per day through 2019.

Regulatory documents also show that Exxon’s heavily-affected chemicals business could blow its fourth-quarter earnings against the third due to weaker margins due to the global glut of the polyethylene market.

Continued pressure on refining margins and the impact of derivatives on the gas, diesel and other products business is expected to weigh on the company’s loss-making profitability.

Operating profit from its core oil and gas business could grow to 2.7 billion USD from 2.2 billion USD in the third quarter. The sale of the Norwegian business is expected to add between 3.4 billion USD and 3.6 billion USD to the overall profit of the more successful unit.