Exxon Mobil Corporation (XOM) reported a 28% dip in earnings for the fourth quarter due to tax reform and impairments. The results exceeded analysts’ expectations. Following the earnings report, the energy giant’s stock inched up 2.66% in the premarket session.
Net income fell 28% to $6 billion or $1.41 per share. Excluding tax reform and impairments, earnings soared 72% to $6.41 billion. Total revenues increased 8.1% to $71.9 billion.
Oil-equivalent production rose 0.5% to 4.01-kilo barrels per day from the year-ago period. Liquids production increased by 97-kilo barrels per day was partly offset by decline, lower entitlements, and divestments. Gas production declined by 467 thousand cubic feet per day largely in the US aligned with value focus, lower demand, lower entitlements, and divestments.
Total earnings in the upstream division decreased significantly from the previous year, due to the absence of favorable US tax reform impacts and lower impairments as well as lower crude realizations and higher operating and exploration expenses.
Profits in the downstream segment benefited from North American integration and portfolio high-grading. The chemical segment saw earnings decline as lower polyolefins margins due to lengthening industry supply as well as higher planned maintenance offset increased polyethylene sales from new assets and a favorable non-US tax item.
Also read: Transcript of Exxon Mobil fourth quarter 2018 earnings conference call
Cash flow from operations and asset sales were $9.5 billion, including proceeds associated with asset sales of $884 million. Capital and exploration expenditures were $7.8 billion, down 12.8% from the previous year quarter.
During the quarter, Exxon posted year-over-year increases in refinery throughput while declines were seen in petroleum product sales and chemical prime product sales. The company distributed $3.5 billion in dividends to shareholders in the fourth quarter.
Shares of Exxon Mobil ended Thursday’s regular session up 1.37% at $73.28 on the NYSE. The stock has fallen over 16% in the past year and over 8% in the past three months.
Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!
Most Popular
Earnings calendar for the week of March 8
On the heels of lawmakers moving closer to passing the stimulus bill, inflations concerns gripped the market after Federal Reserve chief Jerome Powell at a meeting said the reopening would
Why Costco’s (COST) growth prospects might depend on beating costs, digital lag
Though the retail boom triggered by the pandemic was estimated to be short-lived initially, the shopping spree continued as customers stocked up on essential items, concerned about the persistent market
Gap (GPS) hopes to see a favorable recovery by the second half of 2021
Shares of Gap Inc. (NYSE: GPS) were up 5.8% in afternoon hours on Friday. The stock has gained 103% over the past 12 months. Gap reported mixed results for the
