ExxonMobil Q4 Earnings Report
Headlines
Record profits with Net Income at USD 55.7bn vs USD 23bn for 2021.
Recovering demand post-pandemic and tightening supply saw prices in both crude oil and natural gas rocket.
Despite falling prices in Q4, margins have remained resilient.
Falling prices meant Q4 earnings were slightly behind Q3, though still amongst its most profitable in history.
Production up 30% in new Guyana and Permian oilfields.
Analysis
A cracking year all round for the oil and gas giant, with the earnings report confirming what everyone was broadly already expecting. The high commodity prices as a result of the Ukraine conflict have seen the oil and gas industry rake in profits.
The interesting thing has been the market reaction. Although the company has been steadily buying back stock, there was no increase in the planned stock buybacks. Many market participants expected all this extra cash to be used to reward shareholders through more buybacks. The company bought back stock multiple times in 2022 and has pledged to buy back a further USD 75bn between now and 2024 but it seems the market wants more.
No new buybacks saw the stock fall at the open, before recovering throughout the day as the earnings were digested. $Exxon Mobil(XOM.US$
Record profits with Net Income at USD 55.7bn vs USD 23bn for 2021.
Recovering demand post-pandemic and tightening supply saw prices in both crude oil and natural gas rocket.
Despite falling prices in Q4, margins have remained resilient.
Falling prices meant Q4 earnings were slightly behind Q3, though still amongst its most profitable in history.
Production up 30% in new Guyana and Permian oilfields.
Analysis
A cracking year all round for the oil and gas giant, with the earnings report confirming what everyone was broadly already expecting. The high commodity prices as a result of the Ukraine conflict have seen the oil and gas industry rake in profits.
The interesting thing has been the market reaction. Although the company has been steadily buying back stock, there was no increase in the planned stock buybacks. Many market participants expected all this extra cash to be used to reward shareholders through more buybacks. The company bought back stock multiple times in 2022 and has pledged to buy back a further USD 75bn between now and 2024 but it seems the market wants more.
No new buybacks saw the stock fall at the open, before recovering throughout the day as the earnings were digested. $Exxon Mobil(XOM.US$
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