Exxon Earns $2.7B in First Quarter

Exxon Mobil Corporation (NYSE: XOM) has announced estimated first quarter 2021 earnings of $2.7 billion, or $0.64 per share assuming dilution.

The figure compares with a loss of $610 million in the first quarter of last year. Results included unfavorable identified items of $31 million, or $0.01 per share assuming dilution, the company noted. Total revenues in the first quarter stood at $59.1 billion in 2021 and $56.1 billion in 2020, with total costs at $55.5 billion in the first quarter of 2021 and $56.4 billion in the first quarter of 2020.

First quarter 2021 capital and exploration expenditures were $3.1 billion, which was $4 billion lower than the first quarter of 2020. XOM outlined that cash flow from operating activities of $9.3 billion fully funded dividend and capital expenditures and drove debt reduction of over $4 billion in the first quarter of this year.

The company revealed that the severe weather event in Texas in February reduced first quarter earnings by nearly $600 million across all businesses from decreased production and lower sales volumes, repair costs, and the net impact of energy purchases and sales. All affected facilities have now resumed normal operations, XOM highlighted.

“The strong first quarter results reflect the benefits of higher commodity prices and our focus on structural cost reductions, while prioritizing investments in assets with a low cost of supply,” Darren Woods, the chairman and chief executive officer of XOM, said in a company statement.

“Cash flow from operating activities during the quarter fully covered the dividend and capital investments, and we strengthened the balance sheet by reducing debt. We also made progress on our energy transition strategy by launching our new ExxonMobil Low Carbon Solutions business, which is initially working to develop innovative, large-scale carbon capture and storage (CCS) concepts,” he added.

“As the global leader in carbon capture, we are seeing growing public and private sector support for CCS as a critical enabling technology to reduce emissions and help meet society’s net-zero ambitions,” Woods went on to say.

To contact the author, email andreas.exarheas@rigzone.com