© Reuters. FILE PHOTO: Signage is seen at an Exxon gasoline station in Brooklyn, New York Metropolis, U.S., November 23, 2021. REUTERS/Andrew Kelly
By Sabrina Valle
HOUSTON (Reuters) -Exxon Mobil Corp on Thursday signaled a return to annual revenue for 2021 as stronger oil and gasoline costs drove as a lot as $1.9 billion in working positive factors within the fourth quarter.
The most important U.S. oil producer issued a snapshot of ultimate quarter outcomes that confirmed it expects sequentially greater working revenue in its upstream companies, however doubtlessly flat to decrease working income in downstream and chemical compounds . Official outcomes are due out Feb. 1.
In 2020, Exxon (NYSE:) notched a historic $22.4 billion loss on writedowns from falling oil costs and decrease refining margins. Price cuts coupled with vitality worth positive factors have allowed it to pay down debt and plot a share buyback program subsequent yr.
Analysts forecast an adjusted revenue of $1.76 per share for the quarter, in keeping with Refinitiv IBES information, in comparison with 3 cents a share excluding writedowns a year-ago.
Thursday’s regulatory submitting signaled decrease chemical margins might drag outcomes by $600 million to $800 million, in comparison with the $2.14 billion revenue from the third quarter. And refining margins might keep flat or drop by $200 million in comparison with the $1.23 billion revenue the earlier quarter.
Outcomes will embrace greater than $1 billion in proceeds from the beforehand introduced sale of its U.Ok. North Sea property and doubtlessly smaller quantities from U.S. shale gasoline asset gross sales.
Exxon’s rosier outlook have allowed it to increase deliberate a $20-25 billion per yr outlay on new tasks via 2027, together with $2.5 billion per yr on carbon reductions, and double its pre-pandemic annual revenue by 2025, the corporate has stated.
About 60% of its spending will probably be in key development areas of U.S. shale, Guyana, Brazil, LNG, and chemical merchandise.
Exxon shares fell 36 cents or about 0.59% on Thursday to shut at $60.79. The inventory is up 47% up to now this yr however down 33% during the last 5 years.
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