Exxon Mobil Corporation (NYSE: XOM)
Exxon Mobil reported strong fourth quarter results on Friday sending its shares up by 4%. The world’s largest publicly traded oil company posted net income that beat Wall Street estimates as higher net income in the upstream and downstream segments offset lower income in the chemical segment. However, revenue fell short of expectations during the quarter.
Oil production grew 4% fueled by increased output in the Permian basin. Exxon’s upstream segment saw crude prices weaken in the quarter, though natural gas prices strengthened due to increased demand and higher LNG prices. Industry fuel margins weakened in the downstream segment as a result of lower seasonal gasoline demand and increased supply.
Over the past three months, Exxon stock has lost 9.2% while the Dow Jones Industrial Average has declined 1.5%.
XOM Earnings & Outlook
Exxon Mobil said it had net income of $6.0 billion or $1.41 a share down from $8.38 billion or $1.97 per share in the year-earlier period. Revenue increased to $71.90 billion from $66.52 billion. Analysts surveyed by Refinitiv were expecting earnings per share of $1.08 on revenue of $72.53 billion. The year-ago net income included $5.9 billion in tax benefits arising from the late 2017 tax reform.
Oil equivalent production grew to 4.01 million barrels a day from 3.99 million, beating estimates of 4.00 million. Excluding U.S. tax impacts, net income in the upstream segment, climbed 47% to $3.7 billion while it almost tripled in the downstream segment to $2.73 billion. Net income at the company’s chemical segment declined 20% $744 million.
Exxon Mobil Corporation CEO Comments
Exxon Mobil Chief Executive Darren W. Woods said, “Strong results during a period of commodity price volatility demonstrate ExxonMobil’s ability to deliver superior cash flow in different market environments.”
“Our continued focus on long-term fundamentals and portfolio improvements position us well to grow shareholder value. ExxonMobil’s 2018 results further demonstrate our advantages in technology, scale and integration, providing a strong foundation to successfully compete across commodity price cycles.”
Exxon Mobil Corp. Profile
Exxon Mobil Corporation explores for and produces crude oil and natural gas in the United States, Canada/Other Americas, Europe, Africa, Asia, and Australia/Oceania. It operates through Upstream, Downstream, and Chemical segments.
Exxon Mobil also manufactures petroleum products; manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene, and polypropylene plastics, as well as various specialty products; produces transportation fuels, such as marine gasoil and diesel; and transports and sells crude oil, natural gas, and petroleum products.
The company has collaboration agreements with MagnaBond, LLC to develop technologies that enhances evaluation of well cementing, casing, and tubing. Exxon Mobil Corporation was founded in 1870 and is headquartered in Irving, Texas. – Yahoo Finance
