2023-04-28 15:00:01
Record profits for “ExxonMobil” and “Chevron” in the first quarter of 2023
Exxon Mobil announced, on Friday, that it had achieved record profits in the first quarter of this year, representing more than double what it was a year ago, exceeding “Wall Street” estimates, as the rise in oil and gas production overcame the decline in energy prices from severe levels. Height.
Oil companies have taken advantage of the wave of higher oil and gas prices that began in the aftermath of Russia’s invasion of Ukraine in the first quarter of last year, as they made huge profits as a result of strong demand, with falling costs associated with efforts to confront the closures that took place three years ago, with the aim of Reducing the spread of the Covid-19 epidemic.
“We had a record-breaking first quarter despite the fact that energy prices and refining margins are going down a little bit,” said Katherine Michaels, chief financial officer, in an interview with CNBC Business Channel.
She said the biggest contributor to the better-than-expected earnings came from strong production growth. Exxon’s first quarter was driven by new volumes of crude oil and fuel, as new offshore discoveries and refinery facilities came online.
The company’s profit rose to $11.43 billion, or $2.79 per share, compared to $5.48 billion a year ago, which included losses from exiting the Russian market as part of sanctions imposed by Western countries on Russia following its invasion of Ukraine.
ExxonMobil’s oil and gas production increased by about 300,000 barrels per day, compared to last year’s levels. Last year’s business results showed a loss of $3.4 billion of the company’s assets in Russia.
The company’s production increase reflects a 40% year-over-year increase in production from the Permian Basin of Texas and Guyana, where it operated a second production platform last year, adding about 240,000 barrels per day to production. The higher volumes partially offset an approximately 16% drop in oil prices compared to last year.
The first-quarter results also reflect expansion in fuel production, as the company started operating a new crude oil processing unit last quarter at its Beaumont, Texas plant, which added 250,000 barrels per day of oil refining capacity.
Michaels said the company ended the first quarter with $32.7 billion in cash, but stressed that it had no intention of using it for mergers or acquisitions.
She said Exxon would be open to deals that could provide synergies and generate good returns for shareholders, emphasizing the company’s focus on increasing production in the Permian and Guyana and expanding the Beaumont refinery, among other things.
“Our focus is really on making sure that we execute on those opportunities from internal growth,” she added.
In turn, Chevron Corporation exceeded market expectations today, Friday, as its profits rose in the first quarter, as refining profits offset lower energy prices during most of the ending quarter.
The company’s net profit increased by 5%, with total profits of $6.57 billion, equivalent to $3.46 per share, and those results exceeded analysts’ expectations by 4%, according to Refinitiv data.
On the other hand, Chevron’s oil and gas production division witnessed a decline in its net profit by 25%, due to significant declines in oil and gas prices on an annual basis, as Brent crude, the global oil benchmark, traded at an average of $ 82 a barrel during the first three months of the year. , down 16% from a year earlier and down 7% from the fourth quarter.
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