HOUSTON, Texas – ExxonMobil on Wednesday signalled another strong operational profit of about US$15.4 billion (S$20.7 billion) in its fourth quarter, pushing it towards a record take for all of 2022.
The largest United States oil producer indicated in a securities filing a cooling from its massive profits from the prior quarters. But preliminary operational results confirmed that 2022 was Exxon’s best financial year, with profits of around US$58 billion.
Formal earnings are due on Jan 31.
Operational results from pumping oil and gas, the company’s largest business, retreated about US$2.3 billion from the record US$12.4 billion in the third quarter as crude prices fell.
The gasoline and diesel business delivered about US$4.9 billion of profit in the quarter as fuel prices also eased from summer highs. Chemical profits decreased to about US$300 million, while motor oil profits were unchanged at about US$800 million.
The operating profits of about US$15.4 billion, excluding impairments, indicates that annual results will far exceed the record US$45 billion Exxon posted in 2008, when oil prices peaked at US$142 a barrel. The company posted back-to-back record profits in the second and third quarters in 2022.
These record profits might lead to fresh calls to levy windfall taxes in the US. In Europe, Exxon is already legally battling the European Union against further taxes that the company says discourages investments.
High international oil and natural gas prices in 2022 generated record earnings among all oil majors. Exxon benefited the most after doubling down on oil during the Covid-19 pandemic as European rivals shifted to renewable energy projects. Its shares jumped 80 per cent in 2022, outrunning rivals.
Sky-high oil prices that fuelled gains for most of the year eased in the final quarter. Brent futures closed 2022 at US$77.17 a barrel, after hitting nearly US$140 a barrel in March.
Global gas markets, on the other hand, ended 2022 with strong gains. US gas futures jumped by more than 20 per cent. REUTERS
