Exxon profit beats Wall Street forecasts on increased oil and gas production

• The company reports a per-share profit of $2.08, above analysts' expectations of $1.94

• Exxon aims for net-zero Scope 1 and 2 greenhouse gas emissions from operating assets by 2050

Exxon Mobil Corp (NYSE: XOM) announced a fourth-quarter profit of $8.9 billion and full-year earnings of $23 billion on Tuesday, as the leading US oil producer profited from high energy prices.

It posted a per-share profit of $2.08, above analysts' expectations of $1.94, as operational profit in oil and gas production increased dramatically. 

In the fourth quarter, oil-equivalent output was 3.8 million barrels per day. Excluding entitlement impacts, divestments, and government obligations, oil-equivalent output climbed 2% compared to the previous quarter and 2% versus the preceding year, owing to demand recovery.

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The company’s cash flow from operational activities generates $48 billion, the highest level since 2012, more than covering capital investments, debt reduction, and dividend payments.

“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,” said Darren Woods, chairman, and chief executive officer, in a statement. 

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Net Zero 

The corporation intends to reach its emission-reduction targets for 2025 four years ahead of schedule. This comprises a 15-20% reduction in the greenhouse gas intensity of upstream activities, a 40-50% drop in methane intensity, and a 35-45 percent reduction in flaring intensity across the organization compared to 2016.

The oil giant aims for net-zero Scope 1 and 2 greenhouse gas emissions from operating assets by 2050, with intentions to achieve net zero in the Permian Basin by 2030.

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The company intends to spend $15 billion in low-emission technologies to reduce Scope 1 and 2 greenhouse gas emissions while also assisting clients in decarbonizing, with an emphasis on carbon capture and storage, hydrogen, and biofuels.

Chemical

Due to increasing industry supply and higher feed and energy prices, fourth-quarter industry margins fell from historically high levels to the center of the 10-year range.

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Earnings of $7.8 billion were a full-year record, indicating strong industry demand, high dependability, structural cost reductions, and the company's worldwide supply and logistics advantages.

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