Exxon Mobil achieves first profit in 5 quarters

According to a report from the ICIS-MRC website in Moscow on May 19, according to information from the Hydrocarbon Processing Network, driven by rising oil prices and strong chemical profits, ExxonMobil Corp announced on Friday The quarterly profit exceeded Wall Street expectations.

ExxonMobil and its competitors' profits have been growing this year.

According to quarterly results, ExxonMobil cut costs significantly, allowing it to reverse last year's historic annual loss and bringing in the strong cash flow needed to reduce debt.

According to data from Refinitiv IBES, adjusted earnings per share were 65 cents, exceeding analyst expectations of 59 cents.

The profit of the chemical industry is the biggest factor in the performance of the first quarter.

Woods said in an interview that when the company formulated its spending plan in November last year, it was difficult to predict the situation this year.

The stock has risen 35% since January, and fell 1.

However, Borkhataria said that this year’s free cash flow yield is expected to be 9%, “even in an optimistic macro situation, it is still far below the level of its peers.

　　The company’s chemical business had its best quarter since at least 2012, with a profit of US$1.

　　Due to the winter storm and fuel demand, the refining business lost 390 million U.

　　Hao Fen translated from ICIS-MRC

　　The original text is as follows:

　　ExxonMobil topped Wall Street quarterly earnings estimates

　　ExxonMobil Corp on Friday topped Wall Street quarterly earnings estimates with its first profit in five quarters, boosted by higher oil prices and strong chemicals margins, said Hydrocarbonprocessing.

　　Earnings from Exxon and rivals this year have been rising with crude oil prices, up by a third this year, as a global oil surplus from the pandemic drains and fuel demand recovers.

　　Quarterly results show Exxon's deep cost cuts have allowed it to turn the corner on last year's historic annual loss and deliver strong cash flow need to reduce debt.

　　Adjusted earnings of 65 cents per share beat analyst expectations of 59 cents, according to Refinitiv IBES data.

　　Chemical earnings were the largest factor in first quarter results with a profit nearly 10 times the year-ago level and the strongest in at least five years.

　　When the company set spending plans in November, it was “difficult to call what this year was going to look like,” Woods said in an interview.

　　It still expects to spend near the low end of its USD16 billion to USD19 billion estimates for new projects, he said.
The Irving, Texas-based company last year cut $8 billion from operating expenses and vowed to reduce operational spending by another USD3 billion by 2023.

　　Shares, which have climbed 35% since January, were down 1.
7% at USD57.
96 on Friday alongside oil prices and other oil and gas companies.
Exxon covered its spending and dividend with cash flow for the first time since the third quarter of 2018.
Net debt declined for the first time in several quarters, said analyst Biraj Borkhataria of RBC Europe Limited.

　　But free cash flow yield, estimated at 9% this year, “remains well below peers even in a bullish macro scenario,” Borkhataria said.
Exploration and production, Exxon's largest business, earned USD2.
6 billion in the first quarter on higher oil prices , compared with a profit of USD536 million a year earlier.

　　Its chemicals business posted the best quarter since at least 2012, earning USD1.
4 billion on better margins, up from a USD144 million profit a year ago.
Exxon's chemicals business was once a profits engine but had faltered prior to the pandemic.
The company appears to be “righting the ship,” said Peter McNally, analyst at Third Bridge Group.

　　Refining lost USD390 million, compared with loss of USD611 million last year, on winter storm shutdowns impacts and fuel demand.
With product sales down 8% from last year, Exxon needs “volume uptick to get any kind of profit recovery” in refining, McNally said.