The Exxon Mobil Corporation has announced estimated 2017 earnings of $19.7bn compared with $7.8bn in 2016. U.S. federal tax reform in the fourth quarter resulted in a non-cash earnings gain of $5.9bn, due to revaluation of deferred income tax balances.
Fourth quarter 2017 earnings were $8.4bn. Earnings excluding U.S. tax reform and impairments were $3.7bn in the fourth quarter 2017, down 2% compared with the prior-year quarter.
Chairman and Chief Executive Officer, Darren W. Woods said: “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. 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 $8.4bn, including $7.1bn from U.S. tax reform and asset impairments of $1.3bn. Fourth quarter earnings excluding U.S. tax reform and impairments increased $1bn, to $2.5bn, driven by higher prices as liquids realizations increased more than $10 per barrel.
Downstream earnings in the fourth quarter were $1.6bn, including $618m from U.S. tax reform. Earnings excluding U.S. tax reform and impairments declined $289m, to $952m, as the absence of last year’s Canada retail divestment gain of $522m was partially offset by higher margins and asset management gains in the current quarter.
Chemical earnings were $1.3bn in the fourth quarter. Excluding the $335m impact from U.S. tax reform, Chemical earnings increased $63m, or 7%, due to higher sales. Prime product sales of 6.8 million metric tons were the highest in a decade.
For full details visit www.exxonmobil.com
7th Feb 2018