Exxon (XOM) Earnings for Q1 2022

Exxon Mobil shares fell on Friday after the company received $3.4 billion after taxes related to its operation of the Sakhalin-1 project in Russia.

Exxon earned $5.5 billion in the first quarter, up from $2.7 billion in the same period in 2021. However, the results were lower compared to the $8.87 billion earned in the fourth quarter of 2021.

Revenue for the last period amounted to $90.5 billion. Analysts polled by Refinitiv had expected the company to generate $92.73 billion in revenue. In the same quarter of 2021, Exxon had $59.1 billion in revenue.

“Earnings edged up slightly as strong margin improvement and underlying growth were offset by weather and timing factors,” CEO Darren Woods said in a statement. “The absence of these temporary impacts in March provides a strong positive momentum for the second quarter.”

Exxon’s results came on the back of rising oil and gas prices. Oil jumped to its highest level since 2008 after Russia’s invasion of Ukraine, raising supply concerns. US oil is trading above $130.50 per barrel. Prices have declined but remain above $100 a barrel, stimulating energy companies.

Exxon’s capital spending and exploration spending in the first quarter was $4.9 billion over the period, with oil equivalent production down 4% quarter-on-quarter to 3.7 million barrels per day.

“First quarter cash increased by $4.3 billion compared to the fourth quarter of 2021 as strong operating cash flow outpaces funded capital expenditures, additional debt reduction and shareholder distributions in the quarter. Free cash flow for the quarter was approximately $11 billion. ,” the company said in a statement.

Exxon bought back $2.1 billion worth of shares during this period and said it would expand its share buyback program. The oil giant now expects to buy back $30 billion by 2023.

Exxon shares fell 2% during premarket trading.