ExxonMobil CEO Darren Woods

U.S. oil and gas company ExxonMobil increased its quarterly earnings to $8.4 billion lifted by higher oil prices and tax cuts. 

According to its financial report on Friday, ExxonMobil’s fourth quarter 2017 earnings totaled $8.4 billion, an increase of $6.7 billion from the fourth quarter of 2016 and earnings of $1.68 billion.

Earnings excluding U.S. tax reform and impairments were $3.7 billion in the fourth quarter 2017, down two percent compared with the prior-year quarter.

Fourth quarter Upstream earnings were $8.4 billion, including $7.1 billion from U.S. tax reform and asset impairments of $1.3 billion, up $9 billion from the fourth quarter of 2016. Higher liquids and gas realizations increased earnings by $1.2 billion.

Fourth quarter earnings excluding U.S. tax reform and impairments increased $1 billion, to $2.5 billion, driven by higher prices as liquids realizations increased more than $10 per barrel.

The company’s estimated full-year 2017 earnings were $19.7 billion compared with $7.8 billion in 2016.

U.S. federal tax reform in the fourth quarter resulted in a non-cash earnings gain of $5.9 billion, due to revaluation of deferred income tax balances. Non-cash asset impairments of $1.5 billion were recorded during the year, mainly relating to assets in the Upstream.

ExxonMobil’s revenues during 4Q 2017 rose to $66.5 billion from $56.4 billion in the prior-year quarter.

Darren W. Woods, chairman and chief executive officer. “We’re planning to invest over $50 billion in the U.S. over the next five years to increase production of profitable volumes and enhance our integrated portfolio, which is supported by the improved business climate created by tax reform.”

The company’s capital and exploration expenditures during the fourth quarter 2017 were $9 billion, including acquisitions in Mozambique and Brazil.

 

Production down

 

On an oil-equivalent basis, production was down 130,000 barrels per day, or 3 percent, compared with the fourth quarter of 2016. Liquids production totaled 2.3 million barrels per day, down 133,000 barrels per day as field decline and lower entitlements were partly offset by higher volumes from work programs and projects.

Natural gas production was 10.4 billion cubic feet per day, up 17 million cubic feet per day from 2016, as project ramp-up and work programs were partly offset by field decline and lower demand.

Offshore Energy Today Staff

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