Exxon’s results went above and beyond the earlier records reported in 2008, hitting $142 per barrel which is 30 percent above the previous year’s average price
ExxonMobil Corp. reported a whopping $56 billion fourth-quarter net profit for 2022, making nearly $6 million per hour and setting a historic high record for the western oil industry. The current fourth quarter EPS earnings of $3.40, and $0.11 for the quarter came in higher than the consensus estimate of $3.29.
The Texas-based company’s results went above and beyond the earlier records reported in 2008, hitting $142 per barrel which is 30 percent above the previous year’s average price. The company had endorsed several cost-cutting measures during the pandemic and helped to improve last year’s earnings.
The profit for the full year was $59 billion, excluding the profit. Oil production has also increased by 100,000 barrels per day in recent years to 3 million bpd. The shares of the company have also increased about 1 percent reaching $114.7. The Russia-Ukraine war directly affected oil production as well as the oil demand, directly impacting the price of the commodity.
The oil giants are currently expected to break records as demand is increasing, marking a combined worth of nearly $200 billion. The high profits have once again put the oil industries at the center of criticism and ignited calls for more countries to impose windfall profit taxes on the companies.
Increase in Revenue = Increase in Taxes
The increase in revenue of oil production combined was more than double in 2021, and this could mean that the industry would most likely receive special taxes on the profits received the previous year. Exxon recently cited the decision by various governments to levy taxes on the industry as counterproductive.
The company has mentioned its $1 billion hit to its final quarter earnings of 2022 from a windfall tax of the European Union that began from asset damages which made the company take a decision to sue the EU, citing that the levy surpasses its legal authority.
The company is presently pursuing its expansion plans and has budgeted $7 billion for hydrogen and biofuel projects between 2002 and 2007. It is also planning to meet with Abu Dhabi National Oil Company for the development of the $8 billion Upper Zakum oil field. The President of upstream Exxon Mobil Liam Mallon during the Energy Intelligence Forum in London stated, “It’s been an extraordinary journey with extraordinary technology and innovation – unlocking enormous potential in that field”.
Upper Zakum is the second-largest offshore oil field in the world and the work on the first phase of project UZ1000 was initiated in 2020 with the intention to increase oil production of the offshore Upper Zakum field to 1 million barrels a day by the year 2024. The Baytown facility in Texas is expected to produce 1 billion cubic feet of blue hydrogen in a day. The fuel is targeted at heavy industries that are hoping to switch to more carbon-neutral and environmentally friendly solutions.
What is Exxon Mobil Corp?
Exxon Mobil is a Texas-based company pioneering the oil and gas industry by chasing new technologies to lower emissions alongside creating more efficient fuels. Evolved over the past 135 years, Exxon grew to be one of the largest publically traded petrochemical organizations in the world.
Who is Exxon Mobil Corp’s CEO?
Darren Woods, an American multi-millionaire businessman is the Chief Executive Officer of Exxon.
Who is Exxon Mobil Corp’s Owner?
Darren Woods, the CEO and Chairman of ExxonMobil Corp.
Where is the headquarters of Exxon Mobil Corp?
Exxon, the American multinational oil and gas corporation is headquartered in Irving, Texas.