Exxon (XOM) Q4 2021 Results

Exxon Mobil’s revenue jumped more than 80% year-over-year in the fourth quarter amid a rebound in oil and gas prices, the company said Tuesday. With Exxon now in a stronger financial position, the company announced that it would begin repurchasing shares in the first quarter.

Shares rose more than 6% on Tuesday to trade at the highest level since April 2019.

The oil giant earned $2.05 a share in the excluding items period, ahead of the $1.93 expected by analysts polled by Refinitiv. Revenue reached $84.97 billion, which was lower than the $91.85 billion expected by analysts.

In the same quarter a year ago, the company earned 3 cents per share excluding items on sales of $46.54 billion. During the third quarter of 2021, the company earned $1.58 per share on an adjusted basis, on sales of $73.79 billion.

In the most recent quarter, Exxon generated $48 billion in cash flow from operating activities, which was the highest since 2012. The company also paid down an additional $9 billion in debt during the fourth quarter. quarter, reducing debt by $20 billion over the full year. 2021. Exxon’s debt level is now back to pre-pandemic levels.

The company said it would begin repurchasing shares in the first quarter of 2022, part of a previously announced plan to repurchase up to $10 billion over the next 12 to 24 months.

On Monday, the company announced it was restructuring its business into three divisions and also moving its headquarters to Houston from Irving, Texas. From April 1, the three divisions of the company will be: upstream, production solutions and low carbon solutions. The company said the streamlined operations will improve efficiency and reduce costs.

“Our new, streamlined business structure is another example of the steps we are taking to further strengthen our competitive advantages and increase shareholder value,” Exxon CEO Darren Woods said in a statement Tuesday. “We made great progress in 2021 and our plans for the future position us to lead in cash flow and earnings growth, operational performance and energy transition.”

Exxon’s benefited from the recovery in oil and gas prices. Crude is trading around its highest level in more than seven years, and on Friday international benchmark Brent crude settled above $90 for the first time since October 2014.

Exxon said it spent $16.6 billion in the year 2021, which was in line with forecasts. For 2022, the company expects to spend between $21 billion and $24 billion.

Exxon shares are up nearly 80% in the past year.

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