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Exxon exceeds estimates.

$XOM (-0,73%)


The No. 1 US oil producer reported a total profit of 33.46 billion dollars for the full year 2024, down from 38.57 billion dollars in the previous year.

After completing the acquisition of Pioneer Natural Resources in May, the company became the largest oil producer in the Permian Basin in 2024, the largest oil field in the US.


Profit for the fourth quarter amounted to 7.39 billion dollars.

Earnings per share amounted to 1.67 dollars, exceeding analysts' estimates of 1.56 dollars.


Exxon's low production costs in the Permian Basin and its lucrative and prolific projects in Guyana have supported the company's profits despite lower oil prices (link) and a drop in profits from fuel production.


The company had said earlier this month that the sharp fall in oil refining margins (link) would mean a drop in profits of USD 300 million to USD 700 million compared to the third quarter.


The start-up of new oil refineries by other companies in Asia and Africa led to higher global fuel supply, even though demand for gasoline and diesel fell short of expectations.

The refining business remains under pressure as the additional supply comes to market, Exxon Chief Financial Officer Kathryn Mikells said in an interview.


"That's what we're really watching as we look ahead to 2025," she said.

The company had previously stated that impairment charges would cost around 600 million dollars in the fourth quarter. The costs stem from the sale of non-strategic assets, including a joint venture in Nigeria , Mikells said.


The largest U.S. oil producer still expects a decision by September in its arbitration case against Chevron's takeover of oil producer Hess, she said. If Chevron goes through with the takeover, the company would gain a foothold in oil projects in Guyana.


While the deal has been approved by U.S. regulators, Exxon and CNOOC, Hess' partners in the Guyana oil joint venture, claim they have a contractual right of first refusal to buy Hess' stake.


Returns to shareholders through buybacks and dividends totaled 36 billion dollars in 2024, compared to 32 billion dollars in the previous year. Distributions to shareholders, a cornerstone of Big Oil's strategy to woo investors, were covered by Exxon's free cash flow of $36.2 billion.

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