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Exxon smashes Western oil majors’ earnings report with $56 billion revenue for 2022

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A automobile passes an Exxon Mobil Corp. gasoline station in Arlington, Virginia, U.S., on Wednesday, April 29, 2020.

Andrew Harrer | Bloomberg | Getty Photos

Exxon Mobil posted a $56 billion revenue for 2022, the corporate mentioned on Tuesday, taking house about $6.3 million per hour final yr, and setting not solely an organization report however a historic excessive for the Western oil trade.

Oil majors are anticipated to interrupt their very own annual information on excessive costs and hovering demand, pushing their mixed take to close $200 billion. The size has renewed criticism of the oil trade and sparked requires extra international locations to levy windfall revenue taxes on the businesses.

Exxon’s outcomes far exceeded the then-record $45.2 billion web revenue it reported in 2008, when oil hit $142 per barrel, 30% above final yr’s common worth. Deep value cuts through the pandemic helped supercharge final yr’s earnings.

“General earnings and cashflow have been up fairly considerably yr on yr,” Exxon Chief Monetary Officer Kathryn Mikells instructed Reuters. “In order that got here actually from a mix of robust markets, robust throughput, robust manufacturing, and actually good value management.”

Exxon mentioned it incurred a $1.3 billion hit to its fourth-quarter earnings from a European Union windfall tax that started within the last quarter and from asset impairments. The corporate is suing the EU, arguing that the levy exceeds its authorized authority.

Excluding prices, revenue for the complete yr was $59.1 billion. Manufacturing was up by about 100,000 barrels of oil and gasoline per day over a yr in the past to three.8 million bpd. Adjusted per share revenue of $3.40 beat consensus of $3.29 per share, in keeping with Refinitiv knowledge.

Shares have been down 1.5% in pre-market buying and selling to $111.88.

Windfall taxes

The outcomes could arrange one other confrontation with the White Home. President Joe Biden’s administration on Friday blasted oil corporations for pouring money into shareholder payouts moderately than manufacturing.

Exxon boasted that its money move from operations soared to $76.8 billion final yr, up from $48.1 billion in 2021.

Windfall revenue taxes are “illegal and dangerous coverage,” countered Mikells. Slapping new taxes on oil earnings “has the other impact of what you are attempting to realize,” she mentioned, including that it could discourage new oil and gasoline manufacturing.

Exxon posted $14 billion in fourth-quarter revenue excluding prices, 60% greater than the identical interval final yr however down nearly 25% from the earlier quarter as oil costs eased and a few operations suffered from cold-weather-related outages.

Venture spending

Exxon’s spending on new oil and gasoline tasks bounced again final yr to $22.7 billion, up 37% from the prior yr. The corporate elevated outlays on discoveries in Guyana, within the high U.S. shale area, and on gasoline refining and chemical compounds.

“The counter-cyclical investments we made earlier than and through the pandemic offered the power and merchandise folks wanted as economies started recovering,” Exxon Chief Govt Officer Darren Woods mentioned in a press release.

Its outcomes come forward of what are anticipated to be robust earnings from Shell on Thursday and from BP and TotalEnergies subsequent week.

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