Exxon Mobil Earned Profit In 2023

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Exxon Mobil Earned Profit In 2023

Exxon Mobil (Xom) Earned $36 Billion Profit

Exxon Mobil has posted its profit numbers 2023, which came out to be $36 billion. The numbers were better than the forecast due to increased oil & gas production.

Although the numbers were good, they were better in 2022 due to decreased oil & gas prices.

Exxon Mobil Faced 35% Decline In Profits

The results from Exxon Mobil also showed an impairment charge worth $2.5 billion for the properties in California. The company added that it has been trying to sell the specific properties for more than 12 months.

So, if we exclude the charges mentioned above, Exxon Mobil has experienced a 35% decline in its annual profit.

Exxon Mobil appears not alone in its endeavour to sell unwanted assets. Many oil-producing companies have been trying to improve their balance sheets as they prepare for the upcoming deals.

For starters, Chevron has announced an impairment of $4 billion during the Q4. Similarly, Shell reported a writedown of almost $5.5 billion a few days ago.

In October 2023, Exxon Mobil announced that it would buy Pioneer Natural Resources, while Chevron announced a plan to buy Hess Corp. According to experts, both deals will be concluded in mid-2024.

The results also show that Exxon Mobil has benefited immensely from the trading boom. For example, the trading price of Brent Crude Futures was $82.85 on average during the 4th quarter, a decrease of almost 7%.

That's why Exxon Mobil's profit during Q4 was around $9.96 billion, which comes out to be $2.48/share. For the year 2024, the profitability of Exxon Mobil will depend on the supply-demand balance & and the oil prices.

If the oil supply chain is disrupted, it could send the prices higher & and will also translate into Exxon Mobil's balance sheet.

Amidst all this, Exxon Mobil is also facing the growing threat from the go-green initiatives as the world moves towards eco-friendly energy solutions.

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