Exxon Mobil reported quarterly earnings that beat Wall Road’s expectations, however the firm’s revenue declined considerably from identical interval the 12 months prior as oil costs weakened.
Exxon declared a dividend for the primary quarter of 95 cents per share payable on March 11. The corporate returned $32.4 billion to shareholders in 2023 by $14.9 billion in dividends and $17.4 billion in share buybacks.
Exxon’s inventory was up lower than 1% in morning buying and selling Friday.
This is what Exxon reported for the fourth quarter in contrast with what Wall Road was anticipating, based mostly on a survey of analysts by LSEG, previously often known as Refinitiv:
- Earnings per share: $2.48 adjusted vs. $2.21 anticipated
- Income: $84.3 billion vs. $85.2 billion anticipated
Exxon reported internet earnings of $7.63 billion, or $1.91 per share, for the ultimate three months of 2023, down 40% from the $12.75 billion, or $3.09 per share, revenue reported for a similar quarter in 2022.
Earnings have been damage by a $2 billion impairment cost in California from regulatory points that prevented manufacturing and distribution from coming again on line. Excluding these prices, Exxon earned $2.48 per share, beating Wall Road’s expectations of $2.21 per share.
For 2023, the corporate booked $36 billion revenue, down 35% from $55.7 billion within the 12 months prior.
Crude oil costs have been risky in 2023, with West Texas Intermediate and Brent falling greater than 10% for the 12 months on a weakening Chinese language financial system and document oil manufacturing within the U.S.
“In case you take the market out of it, you’re taking costs and margins out and simply take a look at it on an apples to apples foundation, we have greater than doubled our earnings energy from 2019 to 2023,” Exxon CEO Darren Woods stated in an interview Friday on CNBC’s “Squawk Field.”
Exxon’s inventory reached a 2023 closing excessive of $120.20 on Sept. 27, when oil costs hit their peak however the firm’s shares completed out the 12 months 16% decrease from that prime as crude pulled again.
Exxon’s earnings from its oil and fuel section declined to $4.1 billion within the quarter, down 49% in contrast with the $8.2 billion reported within the 12 months in the past interval. The corporate’s vitality merchandise noticed earnings fall to $3.2 billion, down 21% in contrast with $4.07 billion within the fourth quarter of 2022.
Chemical product earnings got here in at $189 million within the last three months of 2023, down 24% from $250 million within the year-ago interval.
Capital and exploration expenditures rose about 4% within the fourth quarter to $7.76 billion in contrast with the year-ago interval when spending stood at $7.46 billion. The upper spending mirrored investments it made within the Permian Basin and Guyana in addition to its resolution to enter the lithium market. Exxon stated it expects to start lithium manufacturing in 2027.
Exxon produced 3.73 million oil-equivalent barrels per day in 2023, largely flat in contrast with the 12 months prior. Manufacturing within the Permian Basin and Guyana elevated 18% over 2022. The corporate expects internet common manufacturing of three.8 million barrels per day in 2024.
The oil main agreed to purchase shale rival Pioneer Pure Assets in October for about $60 billion in an all-stock transaction. The deal is anticipated to shut within the first half of this 12 months.
Learn the complete press launch right here.
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