Texas-based energy giant Exxon Mobil Corp. (XOM) on Friday reported impressive fourth-quarter earnings with a profit of $7.63 billion, or $1.91 per share. The company’s earnings, adjusted for one-time gains and costs, were $2.48 per share, exceeding Wall Street expectations.
The strong Q4 performance was the result of Exxon’s strategic focus on its core business areas, including its upstream and downstream operations. The upstream segment, which includes exploration and production, saw earnings rise due to higher commodity prices and increased production. Meanwhile, the downstream segment, which includes refining and marketing, also contributed to positive results due to improved refinery utilization and higher product prices.
Exxon’s fourth-quarter earnings of $7.63 billion represent a significant increase over the same period last year, which earned $5.46 billion. The company’s full-year earnings for 2023 also saw a significant increase, rising to $32.45 billion from $28.03 billion in 2022.
Despite the strong Q4 performance, Exxon’s earnings fell short of Wall Street expectations, with the average estimate of eight analysts surveyed by Zacks Investment Research predicting earnings of $2.21 per share. However, it’s important to note that Exxon doesn’t adjust its reported results based on one-time events like asset sales.
Exxon’s Q4 earnings report highlights the company’s continued growth and success in the energy sector. With focus on its core business areas, the company is well positioned to continue strong financial performance in the future.
The upstream segment, which includes exploration and production, earned $5.2 billion in the fourth quarter, up from $3.7 billion in the same period last year. The increase was driven by higher commodity prices and increase in production, with the company reporting a 3% increase in production compared to the same period last year.
The downstream segment, which includes refining and marketing, also saw better results with earnings of $2.2 billion, up from $1.5 billion in the fourth quarter of 2022. The growth was due to improvement in refinery utilization and higher product prices, with the company registering a growth of 3%. Refinery utilization compared to the same period last year.
Exxon’s Q4 earnings report also highlights the company’s continued commitment to returning value to shareholders. In Q4, the company returned $3.4 billion to shareholders through dividends and share buybacks, bringing the total amount returned to shareholders in 2023 to $14.5 billion.
In addition to its strong financial performance, Exxon is also committed to reducing its environmental impact. The company aims to reduce its greenhouse gas emissions by 15-20% by 2030, and is investing in new technologies and approaches to help achieve this goal.
In conclusion, Exxon Mobil Corp.’s Q4 earnings report for 2023 showed a profit of $7.63 billion, or $1.91 per share, exceeding Wall Street expectations. The company’s strategic focus on its core business areas, including upstream and downstream operations, contributed to the positive results. With strong full-year performance, a positive outlook for the future, a commitment to returning value to shareholders and a focus on reducing its environmental impact, Exxon remains a major player in the energy sector.
