By YANGE IKYAA
Exxon Mobil Corporation has recorded earnings of $8.9 billion in the fourth quarter of 2021, or an equivalent of $2.08 per share assuming dilution.
This resulted in full-year earnings of $23 billion, or $5.39 per share assuming dilution, according to the company in a February note seen by Valuechain.
Capital and exploration expenditures were $5.8 billion in the fourth quarter and $16.6 billion for the full year 2021, “in line with guidance.”
The company also generated $48 billion of cash flow from operating activities, the highest level since 2012, more than covering capital investments, debt reduction, and dividend. It further reduced structural costs by an additional $1.9 billion, while increasing total savings to nearly $5 billion versus 2019.
Its balance sheet was strengthened to pre-pandemic levels by paying down $20 billion in debt, even as it expects to achieve 2025 emission-reduction plans four years ahead of schedule.
There is also an aim to achieve net zero scope 1 and 2 greenhouse gas emission target for operated assets by 2050, with plans to achieve net zero in the Permian Basin by 2030.“Our effective pandemic response, focused investments during the down-cycle, and structural cost savings positioned us to realize the full benefits of the market recovery in 2021,” said Darren Woods, chairman and chief executive officer.
“Our new streamlined business structure is another example of the actions we are taking to further strengthen our competitive advantages and grow shareholder value. We’ve made great progress in 2021 and our forward plans position us to lead in cash flow and earnings growth, operating performance, and the energy transition,” he concluded.
Average realizations for crude oil increased 8% from the third quarter, while natural gas realizations increased 63% from the prior quarter.
Oil-equivalent production in the fourth quarter was 3.8 million barrels per day. Excluding entitlement effects, divestments, and government mandates, oil-equivalent production increased 2% versus the prior-year quarter, and was also up 2% versus the prior year, driven by demand recovery.
In 2021, production volumes in the Permian increased nearly 100,000 oil-equivalent barrels per day, with improved capital efficiency. The focus remains on continuing to grow free cash flow by increasing recovery through efficiency gains and technology applications.
ExxonMobil continued its low cost of supply deep-water developments in Guyana, with estimated recoverable resources increasing to approximately 10 billion oil-equivalent barrels, supported by six commercial discoveries in 2021.
The Liza Unity floating production, storage, and offloading vessel arrived in Guyanese waters in October 2021, even as the sale of certain United Kingdom North Sea assets to Neo Energy was completed in December 2021.