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NEW YORK: ExxonMobil Corp on Wednesday (Jan 4) signalled another strong operational profit in its fourth quarter, pushing it towards a record profit for all of 2022.
In a securities filing, the largest US oil producer provided a snapshot of factors affecting results for its final quarter. They signalled slightly weaker profits than in its prior quarter but confirmed 2022 had been Exxon’s best financial year. Official earnings are due on Jan 31.
The preview indicates earnings from pumping oil and gas – its largest business – retreated about US$2.3 billion due to lower energy prices from the record US$12.4 billion the upstream business delivered in the third quarter.
Exxon posted a net profit of US$43 billion in the first nine months of the year, including record gains in both its second and third quarters. That alone was near the US$45 billion profit Exxon posted in 2008, when oil prices peaked at US$142 per barrel.
High international oil and natural gas prices last year generated record earnings among the oil majors. Exxon benefited the most after doubling down on oil production during the pandemic as European rivals shifted to renewable energy projects. Its shares jumped 80% in 2022, outrunning rivals.
Sky-high oil prices that fuelled gains for most of the year eased in the year's final quarter. Brent futures closed 2022 at US$77.17 a barrel, after hitting nearly US$140 a barrel in March.
Global gas markets, however, ended 2022 with strong gains. U.S. gas futures jumped by more than 20%. – Reuters
