Signage is seen on a gas pump at an Exxon gas station in Brooklyn, New York City, the United States, November 23, 2021. REUTERS/Andrew Kelly
HOUSTON, April 4 – Exxon Mobil Corp (XOM.N) announced on Monday that first-quarter results could beat a seven-year record, with operating profits from oil and gas pumping alone of up to $9.3 billion .
A snapshot of the March 31-ended quarter of the largest US oil company showed that operating profits at Oil & Gas, its largest unit, rose as much as $2.7 billion from $6.6 billion in the previous quarter could.
Exxon does not hedge or lock in oil sales, and results are generally consistent with changes in energy prices. Russia’s invasion of Ukraine sent oil prices up 45% to average $114 a barrel in the final quarter of 2021, the highest in seven years. Continue reading
Estimates point to total earnings for the quarter of about $9.8 billion at the midpoint of Exxon estimates, according to Scotiabank Global Equity Research.
Exxon shares, which are up 36% year-to-date, edged up to $83.16 on Monday. Official results are expected to be released on April 29, according to a securities filing.
The outlook implies adjusted earnings of around $2.29 per share, Scotiabank analyst Paul Cheng said in a note. The total would guarantee Exxon its highest quarterly profit since at least 2014.
The Blockbuster Oil & Gas Earnings previews other companies’ oil earnings. Such results could fuel US and European Union lawmakers’ calls for windfall profit taxes for energy companies.
WRITE RUSSIA?
Final results could be dampened by disruptions to Exxon’s Russian operations. The company said last month it would exit Russia after the invasion of Ukraine. The oil company has $4 billion in assets facing potential confiscation and is facing a 1% to 2% drop in production and sales from the move. Continue reading
“Depending on the terms of its exit from Sakhalin, the company may have to write off its investment in the project to full book value,” a filing said.
High oil and gas prices accelerated after the Russian invasion and the imposition of sanctions on oil, coal and LNG. Global oil prices hit a 14-year high in the first quarter and have since cooled as the US announced it would release emergency supplies and China began a lockdown.
Refining operating profits could be as much as $300 million higher than the $1.5 billion generated in the fourth quarter, while the chemicals business declined compared to the previous quarter’s $1.3 billion profit could go down to $300 million.
Reporting by Sabrina Valle; Edited by Chizu Nomiyama and Richard Pullin