ExxonMobil Q4 Adj. EPS Tops Estimates, But Revenues Miss

(RTTNews) - Oil major Exxon Mobil Corp. (XOM) reported Friday a profit for the fourth quarter that plunged 40 percent from last year, reflecting lower natural gas and crude oil realizations as well as weaker industry refining margins. Adjusted earnings per share topped analysts' expectations, while quarterly revenues missed it.

For the fourth quarter, the company reported net income attributable to ExxonMobil of $7.63 billion or $1.91 per share, sharply lower than $12.75 billion or $3.09 per share in the prior-year quarter.

The results for the latest quarter included unfavorable identified items of $2.3 billion including a $2.0 billion impairment as a result of regulatory obstacles in California that have prevented production and distribution assets from coming back online, partly offset by favorable tax and divestment-related items.

Excluding special items, adjusted earnings were $2.48 per share, compared to $3.40 per share in the year-ago quarter.

On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $2.21 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues and other income for the quarter declined to $84.34 billion from $95.43 billion in the same quarter last year. Wall Street expected revenues of $85.23 billion for the quarter.

The company's oil-equivalent production in the quarter remained flat with last year at 3.82 million barrels per day or Boe.

ExxonMobil's upstream segment earnings halved to $4.15 billion from $8.20 billion last year, reflecting lower crude realizations, unfavorable tax impacts, and year-end inventory effects.

Energy products segment earnings were $3.21 billion, lower than $4.07 billion last year on weaker industry refining margins, higher seasonal expenses and lower volumes from higher scheduled maintenance and divestments.

Chemicals segment's earnings declined to $189 million from last year's $250 million, and speciality products segment's earnings were $650 million, down from $760 million last year.

Capital and exploration expenditures were $7.76 billion in the fourth quarter, compared to $7.46 billion last year. This brings year-to-date 2023 expenditures to $26.3 billion, slightly above the top end of the guidance range.

The company continued to strengthen its portfolio with the closing of the East Texas upstream assets divestment in the fourth quarter. Total asset sales and divestments generated $4.1 billion of cash proceeds during the year.

The Corporation also declared a first-quarter dividend of $0.95 per share, payable on March 11, 2024, to shareholders of record of Common Stock at the close of business on February 14, 2024.

During the quarter, the company launched its new Mobil Lithium business with the potential to supply up to one million EVs per year by 2030. The company is planning first production for 2027.

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