ExxonMobil Corporation reported a fourth-quarter profit of $8.87 billion, its largest in seven years, as the top U.S. oil producer benefited from strong energy prices.
The company slashed spending after fuel demand cratered two years ago. Since then, earnings have topped pre-pandemic levels, helped by the rise in oil prices, with the global oil benchmark Brentalso at a seven-year high.
The multinational disclosed a business shakeup to accelerate a $6-billion cut to operating expenses set in motion last year.
The revamping will “position us to lead in cash flow and earnings growth, operating performance, and the energy transition,” Chief Executive Darren Woods said in a statement.
A continuation of high oil prices would “cause us to increase the pace of the share repurchase program,” Chief Financial Officer Kathryn Mikells said. Exxon restarted buybacks last month after a long suspension, with pledge to buy $10 billion by the end of 2023.
Shares in midday trading went up five per cent to $80.02, near a three-year high.
ExxonMobil reported an adjusted profit of $2.05 per share, 11 cents above analysts’ forecast as the bottom line benefited from soaring oil and gas prices, higher volumes and asset sales. In the same quarter a year ago, Exxon posted an adjusted profit of 3 cents a share.
