This figure has renewed criticism of the oil industry and prompted calls for more countries to tax companies on windfall profits.
Exxon’s results far exceed the record $45.2 billion net profit it posted in 2008, when crude hit $142 a barrel, 30% above the average price of last year. Deep cost cuts during the pandemic helped supercharge last year’s profits.
“Overall, earnings and cash flow have increased significantly year-over-year,” Kathryn Mikells, Exxon’s chief financial officer, told Reuters. “This is really due to a combination of strong markets, large production and good cost control.”
Exxon said its fourth-quarter profit was hit by $1.3 billion from a special European Union tax that began last quarter and asset impairment. The company sued the EU alleging that the tax exceeds its legal powers.
The results may spark another showdown with the White House. On Friday, President Joe Biden’s administration criticized oil companies for directing money to shareholders instead of production.
Exxon boasted that cash flow from its operations soared to $76.8 billion last year, up from $48.1 billion in 2021.
The firm made a profit of 14,000 million dollars in the fourth quarter, 60% more than in the same period last year, but almost 25% less than in the previous quarter, due to the fall in crude oil prices and the interruptions of some operations due to the cold.
Adjusted earnings per share for the fourth quarter came in at $3.09 per share, below the $3.32 per share forecast by Zacks Financial.
Source: Ambito
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