ExxonMobil Posts $7.39bn Profit, Takes $608m Hit On Nigeria Joint Venture Sale

Exxon Mobil reported fourth-quarter earnings of $7.39bn, or $1.67 per share, surpassing Wall Street estimates of $1.56 per share.

The strong performance was driven by increased oil and gas production, which helped offset lower crude prices and weaker refining margins. However, the company took a $608m impairment charge, partly due to the sale of a joint venture in Nigeria.

The largest U.S. oil producer posted full-year earnings of $33.46bn for 2024, down from $38.57bn the previous year. Exxon shares remained unchanged in pre-market trading on Friday.

Exxon expanded its footprint in the Permian Basin, the largest U.S. oilfield, after completing its $59.5bn acquisition of Pioneer Natural Resources in May.

Fourth-quarter adjusted earnings from oil and gas production climbed to $6.28bn, up from $4.15bn a year earlier, as daily production reached 4.6 million barrels of oil equivalent.

Despite strong upstream earnings, Exxon’s refining business faced headwinds. Earnings from fuel production dropped sharply to $323bn in Q4, compared to $3.2bn in the same period last year.

The company cited a global increase in refining capacity, particularly in Asia and Africa, as a factor contributing to weaker margins.

“The refining business remains under pressure as additional supply enters the market,” Chief Financial Officer Kathryn Mikells said in an interview, adding that the company is closely monitoring market conditions heading into 2025.

Exxon’s $608m impairment charge was attributed to asset sales, including the exit from a joint venture in Nigeria. The company continues to navigate an arbitration challenge regarding Chevron’s acquisition of oil producer Hess, with a decision expected by September.

Exxon, along with China’s CNOOC, maintains that it holds contractual rights to purchase Hess’ stake in the Guyana oil joint venture.

Shareholder returns remained a priority, with total buybacks and dividends reaching $36bn in 2024, up from $32bn in 2023. These distributions were fully covered by Exxon’s free cash flow of $36.2bn.

ExxonMobil Posts $7.39bn Profit, Takes $608m Hit On Nigeria Joint Venture Sale is first published on The Whistler Newspaper