Sunday, November 27, 2022

Exxon closes third quarter with US$6.8 billion, advantaged assets playing major role

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Exxon Mobil Corporation announced yesterday that it achieved an estimated US$6.8 billion, or US$1.57 per share in earnings at the close of the 2021 third quarter. This represents a US$7.4 billion increase over 2020 thanks to improved demand and strong operations.

The U.S oil major was keen to note that third quarter capital and exploration expenditures were US$3.9 billion, bringing year-to-date 2021 investments to US$10.8 billion, as the company continued strategic investments in its advantaged assets, including Guyana, Permian Basin, and in Chemicals.

With reference to its Guyana operations, ExxonMobil told shareholders that it continued to progress its high return deepwater developments where discoveries at Pinktail and Cataback increased the estimated recoverable resource base to approximately 10 billion barrels of oil equivalent.

The oil giant said exploration, appraisal, and development drilling continues, with a total of six drillships currently operating. With respect to the Liza Unity floating production, storage, and offloading vessel (FPSO), it recalled that it had set sail from Singapore to Guyana in the quarter and remains on schedule for startup in 2022. Exxon was keen to note too that the third major development, Payara, is on schedule for 2024 startup, while adding that its fourth development, Yellowtail, is expected to achieve first oil in 2025.

During his remarks, CEO and President of Exxon Mobil, Darren Woods intimated that the company’s first priority for the quarter was to significantly grow the value of the company’s base business to achieve industry-leading earnings and cash flow growth. He said this is work that has been ongoing for some time.

The CEO said, “It’s built on the significant changes we have made to our organization and the increased focus on fully leveraging all of our competitive advantages, in technology, scale, integration, functional excellence, and most importantly, our people.”

He added, “It has also allowed us to improve operating performance, drive down cost, and develop a portfolio of industry advantaged high return investments. Our businesses are driving returns and generating cash to maintain a strong balance sheet and fund future investments.”

Over the next few years, OilNOW understands that ExxonMobil plans to grow investments that lower emissions, while leveraging the company’s technology, scale, integration, and global footprint. Towards this end, cumulative low-carbon investments are anticipated to be approximately US$15 billion from 2022 through 2027.

The company is also on track to achieve its 2025 emissions intensity reduction plans by the end of 2021 and expects to announce accelerated Scope 1 and Scope 2 reduction plans later this year.

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