Exxon Mobil profit nearly doubled from previous year to about $5.5 bn

Exxon Mobil profit nearly doubled from previous year to about $5.5 bn

Synopsis

NEW YORK: Exxon Mobil made $5.48 billion in profits in the first quarter, more than doubling its profits compared to the same quarter last year, as oil and gas prices grew consistently.

Exxon Mobil profit nearly doubled from previous year to about $5.5 bn
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NEW YORK: Exxon Mobil made $5.48 billion in profits in the first quarter, more than doubling its profits compared to the same quarter last year, as oil and gas prices grew consistently.

However, due to the war, the oil giant had to quit its Russian activities, resulting in a $3.4 billion write-down.

Including that loss, the oil giant posted profits of $1.28 per share on Friday, considerably below analysts’ projections of $2.23 per share, according to Factset.

The Irving, Texas-based company’s sales was $90.5 billion, substantially exceeding the $59.15 billion recorded in the same quarter a year before.

After Russia invaded Ukraine, the price of oil rose steadily in the first quarter, forcing European countries that rely heavily on Russian energy, as well as others, to scramble to find alternate fuel supplies.

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The price of a barrel of U.S. benchmark crude surged from $76 to nearly $130 before settling at $100 at the end of the quarter, and drivers were paying more for fuel.

Natural gas costs also increased, rising from $3.50 per million British thermal units to around $5.60 per million British thermal units, causing home heating expenses and power rates to rise.

“As we think about recent events, our job has never been clearer or more important,” said Darren Woods, CEO, in a conference call with investors Friday. “The need to meet society’s evolving needs reliably and affordably is what consumers and businesses across the globe are demanding and what we delivered this quarter.”

Exxon’s stock price grew in tandem with growing energy prices. Exxon stated on Friday that it is expanding its stock repurchase programme, informing investors that the corporation might buy back up to $30 billion in stock until 2023. During the quarter, it spent $2.1 billion on share repurchases, giving cash to investors as the stock price soared.

Due to weather-related unscheduled downtime, planned maintenance, and divestments, Exxon’s production fell to 3.7 million barrels per day of oil-equivalent, down 4% from the fourth quarter of 2021. Production in the Permian Basin increased, and the business was on course to achieve a 25% growth in 2022 over the previous year.

By the end of the year, Exxon wants to cease routine flaring in the Permian Basin, which is the process of burning off what it considers excess natural gas.

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Exxon also revealed that its carbon-reduction programmes are progressing. Exxon acquired money to develop its carbon capture facility in LaBarge, Wyoming, and revealed plans to manufacture renewable fuel during the quarter.

Exxon Mobil Corp.’s stock dipped marginally in morning trading.

Chevron also posted a $6.26 billion quarterly profit on Friday, more than four times its earnings in the same period last year. According to a Factset study, profits from the San Ramon, California energy firm fell a nickel short of Wall Street projections, although Chevron does not modify its reported results based on one-time events like asset sales. Revenue increased by 41% to $54.37 billion.

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