ExxonMobil earns $19.7bn in 2017; $8.4bn in fourth quarter

Exxon Mobil Corporation has announced an estimated 2017 earnings of $19.7 billion, or $4.63 per share assuming dilution, compared with $7.8 billion in 2016. U.S. federal tax reform in the fourth quarter resulted in a non-cash earnings gain of $5.9 billion, due to revaluation of deferred income tax balances. Non-cash asset impairments of $1.5 billion were recorded during the year, mainly relating to assets in the Upstream.Fourth quarter 2017 earnings were $8.4 billion. Earnings excluding U.S. tax reform and impairments were $3.7 billion, or $0.88 per share assuming dilution, in the fourth quarter 2017, down 2 percent compared with the prior-year quarter.“The impact of tax reform on our earnings reflects the magnitude of our historic investment in the U.S. and strengthens our commitment to further grow our business here,” said Darren W. Woods, chairman and chief executive officer. “We’re planning to invest over $50 billion in the U.S. over the next five years to increase production of profitable volumes and enhance our integrated portfolio, which is supported by the improved business climate created by tax reform.”
ExxonMobil is investing billions of dollars to increase oil production in the Permian Basin in West Texas and New Mexico, expand existing operations, enhance infrastructure and build new manufacturing sites. These high-quality investments will create value for ExxonMobil shareholders while benefiting the economy, creating thousands of jobs and enhancing energy security.Fourth quarter Upstream earnings were $8.4 billion, including $7.1 billion from U.S. tax reform and asset impairments of $1.3 billion. Fourth quarter earnings excluding U.S. tax reform and impairments increased $1 billion, to $2.5 billion, driven by higher prices as liquids realizations increased more than $10 per barrel.Downstream earnings in the fourth quarter were $1.6 billion, including $618 million from U.S. tax reform. Earnings excluding U.S. tax reform and impairments declined $289 million, to $952 million, as the absence of last year’s Canada retail divestment gain of $522 million was partially offset by higher margins and asset management gains in the current quarter.Chemical earnings were $1.3 billion in the fourth quarter. Excluding the $335 million impact from U.S. tax reform, Chemical earnings increased $63 million, or 7 percent, due to higher sales. Prime product sales of 6.8 million metric tons were the highest in a decade.1 Includes additions to property, plant and equipment and net investments / advancesFourth Quarter 2017 Highlights

  • Earnings of $8.4 billion increased $6.7 billion from the fourth quarter of 2016. Earnings excluding U.S. tax reform and impairments were $3.7 billion, down 2 percent compared with the fourth quarter of 2016.
  • Earnings per share assuming dilution were $1.97.
  • Cash flow from operations and asset sales was $8.8 billion, including proceeds associated with asset sales of $1.4 billion.
  • Capital and exploration expenditures were $9 billion, including acquisitions in Mozambique and Brazil.
  • Oil-equivalent production was 4 million barrels per day, down 3 percent from the prior year. Excluding entitlement effects and divestments, oil-equivalent production was down 1 percent from the prior year.
  • The corporation distributed $3.3 billion in dividends to shareholders.
  • Dividends per share of $0.77 increased 2.7 percent compared to the fourth quarter of 2016.
  • The company announced the sixth oil discovery offshore Guyana with the completion of the Ranger-1 exploration well. The well encountered 230 feet (70 meters) of oil-bearing carbonate reservoir. Previous discoveries offshore Guyana are now estimated to total more than 3.2 billion recoverable oil-equivalent barrels, excluding Ranger.
  • ExxonMobil completed an agreement with Statoil ASA to acquire an interest in the BM-S-8 block offshore Brazil, which contains part of the discovered pre-salt Carcara oil field. ExxonMobil and its partners were also the high bidder on the North Carcara block in round 2 of the pre-salt tender. The Carcara field contains an estimated recoverable resource of 2 billion barrels of high-quality oil. During the quarter, through bid rounds and announced farm-in agreements, ExxonMobil added 14 offshore blocks in Brazil comprising more than 1.25 million net acres.
  • ExxonMobil announced the completion of a transaction to acquire a 25 percent indirect interest in Mozambique’s gas-rich Area 4 block from Eni S.p.A. and assume responsibility for midstream operations. ExxonMobil will lead the construction and operation of all future natural gas liquefaction and related facilities. The deepwater Area 4 block contains an estimated 85 trillion cubic feet of natural gas to support a world-class LNG development.
  • During the quarter, ExxonMobil announced that the Hebron field started production safely and on schedule. The platform, located about 200 miles (350 kilometers) offshore Newfoundland and Labrador, Canada, is expected to produce up to 150,000 barrels of oil per day at its peak.
  • The company started the Odoptu Stage 2 project safely and on schedule. The project has increased the Odoptu field production capacity to nearly 65,000 barrels per day and will help maintain Sakhalin-1 production levels.
  • The company announced that it encountered hydrocarbons after drilling the onshore P’nyang South-2 well, located in the Western Province of Papua New Guinea, adding to a growing high-quality resource base that will underpin a multi-train LNG expansion.
  • ExxonMobil, together with its partners Abu Dhabi National Oil Company and INPEX Corporation, announced an agreement to increase production capacity from the Upper Zakum oil field to 1 million barrels per day by 2024. Under the agreement, ExxonMobil and INPEX Corporation have also been granted a 10 year extension for the Upper Zakum concession.
  • During the quarter, ExxonMobil acquired a crude oil terminal in Wink, Texas, from Genesis Energy, L.P. The terminal is located in the rapidly growing Permian Basin and is strategically positioned to handle crude oil and condensate for transport to Gulf Coast refineries and marine export terminals.
  • ExxonMobil signed production sharing contracts with the government of Mauritania for three deepwater offshore blocks. Together, the blocks comprise nearly 8.4 million acres and are located an average of 125 miles (200 kilometers) offshore Mauritania.
  • The corporation announced that the Neuquén Province government in Argentina has approved the investment plan for the development of a 35-year unconventional exploitation concession in the Los Toldos I South block. The initial investment of about $200 million calls for a pilot project of up to seven production wells, the construction of production facilities and the development of export infrastructure.
  • The corporation combined its refining and marketing operations into a single company, ExxonMobil Fuels & Lubricants Company, in the first quarter of 2018. The further integration will help the company to better respond to the needs of its customers and compete more effectively.
  • ExxonMobil opened eight service stations in Mexico during the quarter, the first Mobil-branded service stations in the country. The new service stations will be operated by Grupo Orsan and supplied with gasoline and diesel produced by ExxonMobil’s refineries in Texas. The corporation plans to open more than 50 Mobil stations in Mexico during the first quarter of 2018.
  • During the quarter, the company started producing on-spec product from the world’s largest hydrocarbon resin plant, located in Singapore. The new facility will produce 90,000 metric tons per year of Escorez adhesive resins to meet long-term demand growth in Asia Pacific and will double the company’s capacity to manufacture high-performance resins.

Fourth Quarter 2017 vs. Fourth Quarter 2016

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