Stabroek Block operator, ExxonMobil today announced its financial results for the first quarter of 2024. In its filing, the United States (US) oil giant reported that its earnings fell to US$8.2 billion from US$11.6 billion the year before, slightly short of market expectations.
The company attributed the decline to lower gas prices and narrower refining margins, both of which fell back toward historical averages from highs last year.
In the first quarter, ExxonMobil showcased robust financial performance, generating US$14.7 billion in cash flow from operations and attaining a solid free cash flow of US$10.1 billion. Despite this, earnings experienced a decline compared to the previous year, mainly due to lower refining margins and natural gas prices returning to a typical range.
Further, strategic growth in regions like Guyana and advancements in high-value chemical products drove performance, albeit offset by reduced base volumes from divestments and operational challenges.
As for structural cost reductions of US$0.4 billion during the quarter, totaling $10.1 billion since 2019, this the company said remains on track to meet the US$15 billion target by 2027.
Exxon Mobil Corporation’s Chairman and Chief Executive Officer, Darren Woods, recently highlighted the company’s robust performance during the earnings call, emphasizing significant achievements and future strategies.
“We delivered a strong quarter with continued growth in advantaged assets, such as Guyana, where production continues at higher-than-expected levels, contributing to historic economic growth for the Guyanese people,” stated Woods. He underscored the pivotal role of Guyana’s operations in bolstering the company’s performance and fostering economic prosperity in the region.
In addition to the success in Guyana, Woods highlighted the exceptional performance in Product Solutions, citing a strong turnaround that drove record first-quarter refining throughput. This achievement reflects Exxon’s commitment to operational excellence and efficiency.
Looking forward, Woods outlined the company’s strategic initiatives aimed at enhancing earnings power and reducing structural costs. He emphasized ongoing investments in advantaged assets and higher-value products, as well as efforts to leverage technology for transformative purposes.
“We are investing in technology to transform the molecules derived from oil and natural gas into products that extend our reach into new, high-value, high-growth markets to capture even greater value from our core competitive advantages,” Woods remarked.
He also noted the company’s forward-looking approach and commitment to innovation positions the company for sustained growth and success in an ever-evolving energy landscape. In addition, its focus on cost efficiency and high-value projects is expected to continue driving its performance in the challenging energy sector.
