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Exxon returns to Q4 profit as demand continues to improve

AP – Exxon Mobil returned to a profit in its fourth quarter as demand for oil continues to improve.

The oil and natural gas company earned USD8.87 billion, or USD2.08 per share for the final three months of 2021. A year earlier it lost USD20.07 billion, or USD4.70 per share.

Removing certain items, earnings were USD2.05 per share. Analysts polled by Zacks Investment Research expected a profit of USD1.96 per share, on average.

Exxon does not adjust its reported results based on one-time events such as asset sales.

Exxon is capitalising on a resurgence in oil demand following a slowdown during the pandemic. Crude is up 17 per cent so far this year, and Exxon is up 24 per cent.

“Our effective pandemic response, focussed investments during the down-cycle, and structural cost savings positioned us to realise the full benefits of the market recovery in 2021,” Chairman and CEO Darren Woods said in a statement yesterday.

Fourth-quarter oil-equivalent production was 3.8 million barrels per day. Excluding entitlement effects, divestments, and government mandates, oil-equivalent production increased two per cent compared with the year-ago period.

Quarterly revenue surged to USD84.97 billion from USD46.54 billion. Wall Street was calling for revenue of USD82.44 billion.

An Exxon service station sign in Nashville, Tennessee. PHOTO: AP