ExxonMobil Swings To Profit In Q4, Tops Estimates

Oil major Exxon Mobil Corp. (XOM) reported Tuesday a profit for the fourth quarter compared to a steep loss last year, reflecting sharply lower non-cash impairments at its U.S. upstream operations. Adjusted earnings per share for the quarter topped analysts’ expectations, while quarterly revenues missed them.

For the fourth quarter, the company reported net income attributable to ExxonMobil of $8.87 billion or $2.08 per share, compared to a steep net loss of $20.07 billion or $4.70 per share in the prior-year quarter.

Excluding special items, adjusted earnings were $2.05 per share, compared to $0.03 per share in the year-ago quarter.

On average, 21 analysts polled by Thomson Reuters expected the company to report earnings of $1.93 per share for the quarter. Analysts’ estimates typically exclude special items.

Total revenues and other income increased to nearly doubled to $84.97 billion from $46.54 billion in the same quarter last year. Wall Street expected revenues of $91.85 billion for the quarter.

The company’s oil-equivalent production in the quarter increased to 3.82 million barrels per day from 3.69 million Boe in the prior-year period.

ExxonMobil’s upstream segment earnings were $7.0 billion, compared to a loss of 18.5 billion last year. The downstream segment earnings were $1.5 billion, compared to a loss of 1.2 billion last year.
Chemicals segment’s earnings soared to $1.9 billion from last year’s $691 million.

Capital and exploration expenditures were $5.81 billion in the fourth quarter, compared to $4.77 billion last year.

The company said it expects to achieve 2025 emission-reduction plans four years ahead of schedule. It also aims to achieve net zero Scope 1 and 2 greenhouse gas emissions for operated assets by 2050, with plans to achieve net zero in the Permian Basin by 2030.

Beginning in the first quarter of 2022, the company initiated share repurchases associated with the previously announced buyback program of up to $10 billion over the next 12 to 24 months.

“We’ve made great progress in 2021 and our forward plans position us to lead in cash flow and earnings growth, operating performance, and the energy transition,” said Darren Woods, chairman and CEO.

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