Exxon reports fourth consecutive quarterly profit despite charges



FILE PHOTO: Exxon Mobil Corp logo displayed at the Rio Oil and Gas Expo and Conference in Rio de Janeiro


© Reuters/SERGIO MORAES
FILE PHOTO: Exxon Mobil Corp logo displayed at the Rio Oil and Gas Expo and Conference in Rio de Janeiro

From Sabrina Valle

HOUSTON (Reuters) – Exxon Mobil Corp on Thursday signaled a return to full year earnings for 2021 as higher oil and gas prices resulted in up to $ 1.9 billion in operating profits exceeding one-time charges.

The largest US oil producer released a snapshot of last quarter’s results showing that it expects sequentially higher profits from oil and gas production. Operating profits in refineries and chemicals will be unchanged or even lower, as a securities filing showed. Official results will be released on February 1st.



Signage is seen at an Exxon gas station in Brooklyn, New York City


© Reuters/ANDREW KELLY
Signage is seen at an Exxon gas station in Brooklyn, New York City

In 2020, Exxon suffered a historic loss of $ 22.4 billion from depreciation due to falling oil prices and lower refining margins. Cost reductions combined with increases in energy prices have enabled him to pay off debt and plan a share buyback program for the next year.

Analysts are forecasting adjusted earnings of $ 1.76 per share for the quarter, according to Refinitiv IBES data, compared to 3 cents per share excluding depreciation last year.

The regulatory notice filed on Thursday signaled one-time charges for asset depreciation and contract costs could cut oil and gas revenues by as much as $ 1.2 billion. It did not provide any information on the production facilities concerned.

Exxon also said lower margins on chemicals could cut results by $ 600 million to $ 800 million, compared to chemical profits of $ 2.14 billion in the third quarter. Refining margins could remain unchanged or decrease by $ 200 million from a profit of $ 1.23 billion in the previous quarter.

To offset the negative impact, Exxon reported mark-to-market gains of up to $ 1.1 billion in oil and gas and refined products. It also said the proceeds from the sale of assets, including the UK’s North Sea assets, could yield up to $ 500 million.

The brighter outlook allowed Exxon to extend planned spending of $ 20-25 billion per year on new projects through 2027, including $ 2.5 billion per year on carbon reductions, the company said, adding, it expects to double its annual profit before the pandemic by 2025. said the company.

About 60% of spending is in key growth areas such as US shale, Guyana, Brazil, LNG and chemical products.

Exxon’s shares fell 36 cents, or about 0.59%, on Thursday to close at $ 60.79. The stock is up 47% so far this year, but has fallen 33% over the past five years.

(Reporting by Sabrina Valle; Additional reporting by Ashwini Raj in Bengaluru; Editing by David Gregorio)

Reference-www.nach-welt.com

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