Middle East

Exxon shows profits for 4 consecutive quarters


December 30, 2021

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ExxonMobil Corp said Thursday that rising oil and gas prices returned to 2021’s annual profit, with operating profit above one-time costs increasing by up to $ 1.9 billion.

The largest oil producer in the United States has released a snapshot of its final quarter results. This shows that higher profits are expected from oil and gas production. Operating profit for refining and chemicals will be flat to declining, Securities Filing said. Official results are until February 1st.

In 2020, Exxon suffered a historic $ 22.4 billion loss due to write-downs due to lower oil prices and lower refining margins. Cost reductions and rising energy prices have allowed us to pay off our debt and plan a share buyback program next year.

Analysts expect quarterly adjusted earnings to be $ 1.76 per share, compared to 3 cents per share excluding write-downs a year ago, according to Refinitiv IBES data.

A regulatory filing on Thursday showed that asset impairment and temporary charges for contractual costs could reduce oil and gas revenues by up to $ 1.2 billion. Details of the affected production assets are not provided.

Exxon also said that low chemical margins could result in a drop of $ 600 million to $ 800 million in third-quarter chemical profits of $ 2.14 billion. The refining margin could be flat or down $ 200 million compared to a profit of $ 1.23 billion in the previous quarter.

To offset the negative impact, Exxon showed a market value of up to $ 1.1 billion in oil, gas and refined products. He added that the proceeds from the sale of assets, including those in the North Sea of ​​the United Kingdom, could bring up to $ 500 million.

The outlook allows Exxon to extend its annual spending of $ 20-25 billion on new projects by 2027, including $ 2.5 billion annually in carbon reductions. The company said.

Approximately 60% of that spending goes to major growth areas of US shale, Guyana, Brazil, LNG, and chemicals.

Exxon’s share price fell 36 cents (about 0.59%) on Thursday, closing at $ 60.79. Inventory has increased by 47% so far this year, but has decreased by 33% over the last five years.

(Report by Sabrina Valle, additional report by Ashwini Raj, edited by David Gregorio)

https://www.oedigital.com/news/493194-exxon-signals-fourth-quarterly-profit-in-a-row Exxon shows profits for 4 consecutive quarters

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