ISSN 2330-717X

ExxonMobil Earns $19.7 Billion In 2017


Exxon Mobil Corporation announced Friday estimated 2017 earnings of $19.7 billion, or $4.63 per share assuming dilution, compared with $7.8 billion in 2016. U.S. federal tax reform in the fourth quarter resulted in a non-cash earnings gain of $5.9 billion, due to revaluation of deferred income tax balances. Non-cash asset impairments of $1.5 billion were recorded during the year, mainly relating to assets in the Upstream.

Fourth quarter 2017 earnings were $8.4 billion. Earnings excluding U.S. tax reform and impairments were $3.7 billion, or $0.88 per share assuming dilution, in the fourth quarter 2017, down 2 percent compared with the prior-year quarter.

“The impact of tax reform on our earnings reflects the magnitude of our historic investment in the U.S. and strengthens our commitment to further grow our business here,” said Darren W. Woods, chairman and chief executive officer. “We’re planning to invest over $50 billion in the U.S. over the next five years to increase production of profitable volumes and enhance our integrated portfolio, which is supported by the improved business climate created by tax reform.”

ExxonMobil is investing billions of dollars to increase oil production in the Permian Basin in West Texas and New Mexico, expand existing operations, enhance infrastructure and build new manufacturing sites. These high-quality investments will create value for ExxonMobil shareholders while benefiting the economy, creating thousands of jobs and enhancing energy security.

Fourth quarter Upstream earnings were $8.4 billion, including $7.1 billion from U.S. tax reform and asset impairments of $1.3 billion. Fourth quarter earnings excluding U.S. tax reform and impairments increased $1 billion, to $2.5 billion, driven by higher prices as liquids realizations increased more than $10 per barrel.

Downstream earnings in the fourth quarter were $1.6 billion, including $618 million from U.S. tax reform. Earnings excluding U.S. tax reform and impairments declined $289 million, to $952 million, as the absence of last year’s Canada retail divestment gain of $522 million was partially offset by higher margins and asset management gains in the current quarter.

Chemical earnings were $1.3 billion in the fourth quarter. Excluding the $335 million impact from U.S. tax reform, Chemical earnings increased $63 million, or 7 percent, due to higher sales. Prime product sales of 6.8 million metric tons were the highest in a decade.

1 Includes additions to property, plant and equipment and net investments / advances

Click here to have Eurasia Review's newsletter delivered via RSS, as an email newsletter, via mobile or on your personal news page.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.