ExxonMobil Doubles Q1 Profits From Strong Refining, LNG Business

ExxonMobil Doubles Q1 Profits From Strong Refining, LNG Business

/ Financial News / Friday, 28 April 2023 13:57

ExxonMobil reported that its profits more than doubled to $11.4 billion in Q1, as the US oil giant returned over $8 billion to shareholders during the period.

Despite low oil prices in the 2023 period, the earnings were boosted by a better performance in the refining business as well as higher oil and natural gas production.

Results in the 2022 quarter were also dented by one-time costs associated with ExxonMobil's withdrawal from a Russia project after the invasion of Ukraine.

The profits were a record for the company's first quarter, compared to $5.5 billion in the year-ago period. Revenues declined 4.3% to $86.6 billion.

Results in the 2022 period were lifted by spiking oil prices following Russia's invasion of Ukraine, which also resulted in ExxonMobil's withdrawal from the Sakhalin offshore oilfield. The Sakhalin move led to one-time costs of $3.4 billion in the year-ago quarter.

But while crude prices were down 23% compared with the 2022 quarter, production volumes of oil and natural gas rose 4.1%.

Chief Executive Darren Woods said the company "is growing value by increasing production from our advantaged assets to meet global demand."

The streak of massive profits by ExxonMobil and other US oil giants has sparked criticism from President Joe Biden and others, who have urged petroleum producers to boost volumes in a period of elevated inflation rather than spend extra cash on dividends and share repurchases.

The first quarter included a negative $200 million hit from additional European taxes on the energy sector, ExxonMobil said.

Shares climbed 0.4% to $117.31 in pre-market trading.

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