“While our results clearly benefited from a favorable market, the counter-cyclical investments we made before and during the pandemic provided the energy and products people needed,” said CEO Darren Woods.
Exxon Mobil (XOM) – Get Free Report posted stronger-than-expected fourth quarter earnings Tuesday, while posting record full-year profits of $56 billion, amid a surge in global crude prices.
Exxon said adjusted earnings for the three months ending in December were pegged at $3.40 per share, up more than 65% from the same period last year and well ahead of the Street consensus forecast of $3.29 per share. Group revenues, Exxon said, rose 12.3% to $95.43 billion, topping analysts’ estimates of a $94.67 billion tally.
West Texas Intermediate crude prices traded in a reasonably narrow range of between $79 and $81 dollars per barrel over the three months ending in December — with a spike to as high as $94 per barrel in early November — a range that was around 8% higher than the same period last year.
Domestic U.S. gas prices were also notably higher than last year, hitting a peak of $4 per gallon in early November as well.
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“While our results clearly benefited from a favorable market, the counter-cyclical investments we made before and during the pandemic provided the energy and products people needed as economies began recovering and supplies became tight,” said CEO Darren Woods. “We leaned in when others leaned out.”
“Our plan for 2023 calls for further progress on our strategic objectives, which include leading the industry in safety, operating, and financial performance,” he added. “We will continue to invest in our advantaged projects to deliver profitable growth, help meet society’s growing needs, and reduce emissions in our operations, while providing innovative solutions that help others reduce theirs.”
Exxon shares were marked 0.23% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $113.82 each, a move that would extend the stock’s six-month gain to around 21%.
Last week, Exxon’s smaller rival Chevron (CVX) – Get Free Report posted softer-than-expected fourth quarter earnings of $7.9 billion, or $4.09 per share, just days after unveiling plans for a $75 billion buyback. Group revenues, the company said, rose 14% from last year to $55 billion, just ahead of analysts’ estimates of a $54.6 billion tally.
Chevron said it would pay a quarter dividend of $1.51 per share, up from $1.42 per share, while tripling its share buyback plans with a new $75 billion authorization. The dividend is payable to payable on March 10 to holders of record on February 16.
Chevron, as well as other U.S. oil companies, has faced sharp criticism from President Joe Biden, who has accused them of profit-gouging during a time of crisis and failing to use their excess cash to boost production and lower gas prices.
White House spokesman Abdullah Hasan said Thursday that ”for a company that claimed not too long ago that it was ‘working hard’ to increase oil production, handing out $75 billion to executives and wealthy shareholders sure is an odd way to show it.”
“We continue to call on oil companies to use their record profits to increase supply, and reduce costs for the American people,” he added.
