Exxon Mobil posted a $56 billion profit for 2022, the company said on Tuesday, and setting not only a company record but a historic high for the western oil industry. Despite that ExxonMobil’s earnings slowed from a peak earlier in the year, the oil giant still reached a full-year record profit more than double what it reported a year ago.
Oil majors are expected to break their own annual records on high prices and soaring demand, pushing their combined profits to near $200 billion.
Exxon’s results far exceeded the then record $45.2 billion net profit it reported in 2008, when oil hit $142 a barrel, 30% above last year’s average price. Cost cuts during the pandemic helped supercharge last year’s earnings.
“Overall earnings and cashflow were up pretty significantly year on year,” Exxon’s chief financial officer, Kathryn Mikells, told Reuters. “So that came really from a combination of strong markets, strong throughput, strong production and really good cost control.”
Exxon said it incurred a $1.3 billion hit to its fourth-quarter earnings from a EU windfall tax that began in the final quarter and from asset impairments. The company is suing the EU, arguing that the levy exceeds EU’s legal authority.
Excluding charges, profit for the full year was $59.1 billion. Production increased by about 100,000 barrels of oil and gas a day over a year ago to 3.8 million barrels a day.
Oil companies such as ExxonMobil have faced criticism from the White House and some members of Congress for taking much of the profit and using it to increase dividend and repurchase shares, rather than increase production.
CEO Darren Woods defended the company’s investments in production, saying the company’s North American refineries had their biggest output ever, and that it had its highest global refinery production since 2012.
“We engage with the management, with Elon in terms of the plan that he has for the company, and we believe in this, and we trust his leadership in terms of turning around the company,” CEO Mansoor Al Mahmoud said in a Bloomberg Television interview at Davos on Monday.
The executive said the QIA hasn’t asked the Twitter chief to cut back on tweeting, saying that the fund isn’t involved “to that extent.”
The QIA helped finance the acquisition of Twitter, contributing $375 million to the $44 billion deal. The acquisition has triggered an exodus of employees as Elon Musk looks to cut costs, raising concerns about whether Twitter can sustain its operations and regulate content.
Disclaimer: Important Disclosures and Disclaimers. This report is intended for informative purposes only. Under no circumstances is it to be used or considered as an offer to sell or a solicitation of any offer to buy any security. It is recommended that investors independently evaluate the strategies and consult a financial adviser before proceeding to the purchase or sale of any security or other financial instrument. Also note that past performance may not be a reliable indicator of future returns. Investors may not get back the original amount invested. This report has been compiled based on information that I believe is reliable, but the accuracy, completeness, or correctness cannot be guaranteed. The opinions contained within the report are based upon publicly available information at the time of publication and are subject to change without notice.
The use of forward looking wording such as “expect”, “estimate”, “forecast”, involve known and unknown risks and uncertainties which may mean that the actual results may differ from any future results implied by the forward looking wording included in the relevant statement
Main line: (357) 22 256582
Brokers: (357) 22 275323
Fax: +357 22 262545
41 Archbishop Makarios III Avenue, Toumazis Makariou Tower, 1st Floor, Office 11, 1065 Nicosia, Cyprus
There is a high level of risk involved with trading leveraged products such as CFDs. You should not risk more than you can afford to lose, it is possible that you may lose all your initial investment. You should not trade unless you fully understand the true extent of your exposure to the risk of loss. If the risks involved seem unclear to you, please seek independent advice. For further details please refer to Financial Instruments Description and Associated Risks. The information contained in the website has been prepared by Emporium Capital K.A Limited, a Cypriot Investment Firm, operating under license number CIF358/18 issued by the Cyprus Securities and Exchange Commission, and, except otherwise specified herein, is communicated by Emporium Capital K.A Limited. Although this website is accessible worldwide, the publications are only intended for use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. The products and services referred to in the publications are not intended for recipients residing in countries where the provision of such products and services would constitute a violation of applicable legislation or regulations. It is the sole responsibility of any recipient employing or requesting a product or service to comply with all applicable legislation or regulations. >> view more