A 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 incurred an after-tax charge of $3.4 billion related to Sakhalin-1’s operations in Russia.
Exxon earned $5.5 billion in the first quarter, up from $2.7 billion in the same period in 2021. However, the results fell from the $8.87 billion earned in the fourth quarter of 2021. .
Revenue reached $90.5 billion in the most recent period. Analysts surveyed by Refinitiv had expected the company to generate $92.73 billion in revenue. For the same quarter of 2021, Exxon’s revenue was $59.1 billion.
“Earnings increased modestly as margins improved strongly and underlying growth was offset by the impact of weather and timing,” Chief Executive Officer Darren Woods said in a statement. “The absence of these temporary impacts in March provides positive and strong momentum for the second quarter.”
Exxon’s results come amid sharp increases in oil and gas prices. Crude oil rose to its highest level since 2008 after Russia invaded Ukraine, raising supply concerns. US oil traded at a high of $130.50 per barrel. Prices have fallen but remain above $100 a barrel, boosting energy companies’ activity.
Exxon’s total exploration and capital expenditures for the first quarter totaled $4.9 billion for the period, with oil equivalent production down 4% from the previous quarter to 3.7 million barrels per day.
“First-quarter cash grew by $4.3 billion compared to Q4 2021, driven by stronger cash flow from operations than funding investments, additional debt reduction, and shareholder distribution during the quarter. due for the quarter was approximately $11 billion,” the company said in a statement.
Exxon bought back $2.1 billion worth of stock during this time period and said it would increase its share buyback program. Currently, the oil giant is expected to buy back $30 billion through 2023.
Shares of Exxon fell 2% during pre-market trading.
