View of the ExxonMobil Baton Rouge refinery in Baton Rouge, Louisiana, May 15, 2021.
Kathleen Flynn Reuters
Shares of Exxon Mobil fell on Friday after the company took $ 3.4 billion after taxes related to the Sakhalin-1 operation in Russia.
Exxon earned $ 5.5 billion in the first quarter, compared with $ 2.7 billion in the same period in 2021. However, the results were lower than the $ 8.87 billion earned in the fourth quarter of 2021.
Revenue reached $ 90.5 billion in the last period. Analysts polled by Refinitiv expected the company to generate $ 92.73 billion in revenue. In the same quarter of 2021, Exxon’s revenue was $ 59.1 billion.
“Profits have increased moderately as strong margin improvements and key growth have been offset by the effects of time and weather,” CEO Darren Woods said in a statement. “The lack of these temporary impacts in March provides a strong, positive boost for the second quarter.”
Exxon’s results come amid a spike in oil and gas prices. Crude oil jumped to its highest level since 2008 following Russia’s invasion of Ukraine, raising supply concerns. US oil traded at $ 130.50 a barrel. Prices are falling, but remain above $ 100 a barrel, boosting energy companies.
Exxon’s capital and exploration costs for the first quarter amounted to $ 4.9 billion during the period, with oil equivalent production down 4% for the quarter to 3.7 million barrels per day.
“Cash for the first quarter increased by $ 4.3 billion compared to the fourth quarter of 2021, as strong cash flow from operations more than financed capital investments, further debt reduction and shareholder distribution during the quarter. The free cash flow during the quarter was approximately $ 11 billion, the company said in a statement.
Exxon repurchased $ 2.1 billion worth of shares during the period and said it would increase its share repurchase program. The oil giant now expects to buy back $ 30 billion by 2023.
Exxon shares fell 2% during pre-marketing trading.
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