ExxonMobil earns $14.3bn in 2019; $5.7bn in Q4

Fri, Feb 7, 2020
By publisher
4 MIN READ

Oil & Gas

By Anayo Ezugwu

EXXONMOBIL Corporation has announced estimated earnings of $5.7 billion, or $1.33 per share assuming dilution for fourth quarter of 2019. Earnings included favourable identified items of about $3.9 billion, or $0.92 per share assuming dilution, mainly a $3.7 billion gain from the Norway upstream divestment. Capital and exploration expenditures were $8.5 billion, including key investments in the Permian Basin.

The report showed that oil-equivalent production was in line with the fourth quarter of 2018, at four million barrels per day, with a four percent increase in liquids offset by a five percent decrease in gas. Excluding entitlement effects and divestments, liquids production increased two percent driven by Permian Basin growth, while natural gas volumes decreased four percent.

Darren W. Woods, chairman and chief executive officer, said the company’s operations performed well, while short-term supply length in the downstream and chemicals businesses impacted margins and financial results. “Growth in demand for the products that underpin our businesses remains strong. We remain focused on improving our base businesses, driving efficiencies, and optimizing the value of our investment portfolio,” he said.

In the quarter under review, ExxonMobil announced that oil production started from the Liza field offshore Guyana, less than five years after the first discovery of hydrocarbons – well ahead of industry average. Gross production from the Liza Phase 1 development, located in the Stabroek block, is expected to reach capacity of 120,000 gross barrels of oil per day in coming months.

A second floating production, storage and offloading vessel (FPSO), with production capacity up to 220,000 gross barrels of oil per day, is under construction to support the Liza Phase 2 development. During the quarter, the company also announced its 15th discovery on the Stabroek block, at the Mako-1 well southeast of the Liza field. Inclusive of other recent discoveries, the estimated recoverable resource offshore Guyana now exceeds 8 billion gross oil-equivalent barrels.

ExxonMobil anticipates that by 2025 at least five FPSOs will be producing more than 750,000 gross barrels of oil per day. The company completed the previously announced sale of its non-operated upstream assets in Norway to Vår Energi AS for $4.5 billion as part of its plans to divest approximately $15 billion in non-strategic assets by 2021. Estimated total cash flow from the divestment is around $4 billion after closing adjustments, including $2.9 billion received in the fourth quarter and estimated cash flow in future periods associated with deferred consideration of $0.3 billion and a refund of income tax payments of $0.6 billion. The corporation’s fourth quarter earnings include a $3.7 billion gain on the sale.

“ExxonMobil secured more than 1.7 million acres for exploration offshore Egypt during the quarter. The acquisition includes 1.2 million acres in the North Marakia Offshore block, which is located approximately five miles offshore Egypt’s northern coast in the Herodotus basin. The remaining 0.5 million acres are in the North East El Amriya Offshore block in the Nile Delta. Exploration activities are scheduled to begin in 2020.

“ExxonMobil, Tencent, Tuhu and a distribution holding company announced a joint venture establishing an integrated car care network in China. Expected to launch in the spring of 2020, the venture will create a digital automotive maintenance ecosystem that integrates suppliers and customers of Mobil-branded lubricants and other vehicle maintenance products and services, while growing the strong Mobil lubricant brand and Mobil-branded car care network in China.

“The company continues to progress the development of lower-emissions technologies to address the risks of climate change. ExxonMobil and FuelCell Energy, Inc. announced a new, two-year expanded joint-development agreement to further enhance carbonate fuel cell technology for the purpose of capturing carbon dioxide from industrial facilities. The agreement will focus efforts on optimizing the core technology; overall process integration and large-scale deployment of carbon capture solutions.

ExxonMobil also signed an agreement with Porthos, the Port of Rotterdam’s transport hub and offshore storage project. The Porthos project intends to construct a pipeline system to collect carbon dioxide from industrial sites within the Port of Rotterdam and transport the molecules offshore for safe, secure and permanent geologic storage. ExxonMobil extended its support of the Massachusetts Institute of Technology Energy Initiative’s, MITEI, low-carbon energy research and education mission by renewing its status as a founding member for another five years.

“This membership supports MITEI researchers as they evaluate innovative solutions to reduce carbon dioxide emissions in areas, including carbon capture, energy storage, and mobility. The company also announced that it has signed agreements with two Indian Institute of Technology locations in Madras and Bombay, further expanding its extensive portfolio of research collaboration with India’s universities in the areas of biofuels and bio-products, gas transport and environment, and low-emissions technologies for the power and industrial sectors.

– Feb. 7, 2020 @ 18:45 GMT |

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