Exxon Mobil reports $56 billion net profit for 2022
Business
Due to rising demand and high oil prices, oil majors are anticipated to surpass previous yearly records
(Reuters) - Exxon Mobil Corp. reported a $56 billion net profit for 2022, the firm reported on Tuesday. The business earned approximately $6.3 million per hour last year establishing a record for both the corporation and the Western oil sector.
Due to rising demand and high oil prices, oil majors are anticipated to surpass their previous yearly records, bringing their total revenue to close to $200 billion. The size has led to fresh criticism of the oil sector and proposals for other nations to tax businesses windfall profits.
Exxon s profits were much better than the then-record $45.2 billion net profit it posted in 2008, when oil hit $142 per barrel, 30% more than the average price of the previous year. The epidemic led to significant cost reductions, which helped boost revenue last year.
Exxon said that a European Union windfall tax that started in the last quarter and asset impairments cost its fourth-quarter earnings $1.3 billion. The business is challenging the EU claiming that the tax goes beyond what is allowed by law.
Profit for the entire year was $59.1 billion before charges. Production increased to 3.8 million barrels of oil and gas per day from 3.7 million bpd during the previous year. According to Refinitiv statistics, adjusted per-share earnings of $3.40 surpassed estimate of $3.29 per share.
The outcomes pave the way for yet another conflict with the White House. Companies had the option of increasing output but chose to "plough those earnings into padding the pockets of executives and shareholders," according to a statement from the White House.
Exxon reported a fourth-quarter net profit of $12.8 billion, excluding charges, which was up 44% from the same time the previous year but down 35% from the preceding quarter as oil prices declined and several businesses had problems because of the cold weather.
Exxon increased its investment on new oil and gas projects by 37% to $22.7 billion last year from the year before. The corporation expanded its spending on chemicals, gasoline refinery, the top U.S. shale resource, and discoveries in Guyana.
Exxon s results came ahead of what are anticipated to be solid earnings from BP plc and TotalEnergies next week as well as from Shell plc on Thursday.
