ExxonMobil Corporation, the American multinational and operator of Guyana’s Stabroek Block, today announced its profits for the third quarter of 2023, totalling US$9.1 billion, equivalent to US$2.25 per share assuming dilution.
The oil major in a statement disclosed that cash flow from operations was US$16.0 billion, up US$6.6 billion from the previous quarter.
Exxon said its earnings from upstream operations in the third quarter reached US$6.1 billion, a US$1.5 billion increase from the previous quarter, driven by higher crude oil prices, reduced scheduled maintenance, and favorable tax impacts. In comparison to the same quarter in the previous year, earnings decreased by US$6.3 billion.
Exxon said, excluding identified items, earnings declined by US$5.7 billion, primarily due to decreased natural gas and crude oil realizations.
In October, ExxonMobil announced a merger with Pioneer Natural Resources in a US$59.5 billion all-stock transaction, to help become the clear leading player in the Permian.
The company noted that its net production grew by approximately 80,000 oil-equivalent barrels per day compared to the previous year, driven by operations in the Permian Basin and Guyana.
Year-to-date earnings for 2023 were US$17.2 billion, reflecting a decrease of US$11.1 billion compared to the first nine months of 2022. The company attributed this decline to various factors, including lower crude and natural gas realizations. However, increased production from projects in Guyana and the Permian Basin partially offset these declines.
Darren Woods, Chairman and Chief Executive Officer (CEO) of ExxonMobil, highlighted the company’s strong operational performance and its contribution of nearly 80,000 net oil-equivalent barrels per day to the global supply.
Woods said too, “The organization’s relentless focus on safety, environment and value is paying off – driving record refining throughputs, delivering big projects at first-quintile cost and schedule, and exceeding planned structural cost savings while reducing emissions intensity and the impact on the environment.”
Moreover, as part of its strategic plans, ExxonMobil allocated US$6.0 billion to capital and exploration expenditures in the third quarter, bringing the total year-to-date 2023 expenditures to US$18.6 billion. Exxon anticipates that full-year capital and exploration expenditures will fall within the range of US$23 billion to US$25 billion as the company actively pursues value-accretive opportunities.
Furthermore, the company’s debt-to-capital ratio remained at 17%, with a net-debt-to-capital ratio of 4%, reflecting a cash balance of US$33.0 billion at the end of the period.
