The oil company Exxon posted record profits in 2022: 55.7 billion dollars

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The figure exceeds the previous record for the US company, reached in 2008, when the barrel of oil shot up close to 150 dollars

Exxon oil company posted record profits in 2022: $55.7 billion

A tanker truck enters an ExxonMobil fuel storage and distribution facility in Irving, Texas, on Wednesday, May 25 January 2023. (AP Photo/LM Otero)

US oil company Exxon Mobil posted record annual profits in 2022, boosted by widespread higher energy prices and increased refining activities.

The oil giant made a profit of $12.75 billion in the fourth quarter, bringing annual net profit to $55.7 billion. This figure exceeds Exxon's previous record of $45.22 billion, reached in 2008, when a barrel of oil shot up to nearly $150.

This year's figure means multiplying by 2.4 the 23,040 million registered in 2021.

The company based in Irving (Texas) billed < b>398.675 million dollars in 2022, 44% more than in 2021, according to figures published this Tuesday.

In the last quarter of the year, the net profit of the company it grew 43% compared to the same quarter of 2021, to 12,750 million dollars, while its revenues increased 12.3% to 95,429 million dollars.< /p>

The recovery in demand and tight energy supplies helped boost profits, according to the company.

“Although our results clearly benefited from a favorable market, the countercyclical investments we made before and during the pandemic provided the energy and products people needed as economies began to recover and supplies became more scarce,” said CEODarren Woods. “We invest when others cut.”

Exxon achieved its best-ever annual refining performance in North America and itshighest globally since 2012, the company said. It mechanically completed the expansion of its Beaumont refinery in Texas and expects to bring 250,000 barrels per day of crude distillation capacity to market in the first quarter of this year.

The oil company Exxon posted record profits in 2022: $55.7 billion

General view of the Exxon refinery in Beaumont, Texas (REUTERS/Erwin Seba)

Much of the country's refining capacity that was taken offline during the pandemic has yet to come back on, Woods said during a conference call with investors, pushing refining margins higher.

“We have continued to strengthen ourindustry-leading portfolior and increased production of advantageous, high-yield assets in Guyana and the Permian, at a time when the world needs it most,” said Woods.

Exxon earned$3.09 per share in the quarter. This figure was lower than the expectations of analysts polled by Factset, who were expecting $3.29 per share.

The price of oil fluctuated between $70 and $90 per barrel of benchmark US crude during the quarter. Domestic natural gas prices, which affect the cost of domestic energy and electricity, hovered between $6 and $7 per million British thermal units during the quarter, according to FactSet, a price higher than most Americans have paid. in recent years.

Since Russia invaded Ukraine, its supply of natural gas to Europe has decreased, which has caused an increase in the prices of natural gas and its liquid counterpart, LNG, in the world market.

President Joe Biden has accused oil companies of profiting from Russia's war against Ukraine, and has previously raised the possibility of a profit tax from the war to the oil companies. Exxon said it incurred $1.3 billion during the quarter associated with European taxes on the energy sector and asset impairment.

“A tax is needed more than ever on the windfall profits of oil and gas, to free up desperately needed money to help those struggling with the cost of energy, and as economies around the world grapple with recession,” he said. Jonathan Noronha-Gant,campaign manager for Global Witness, a non-profit organization that advocates for environmental sustainability and corporate responsibility.

The oil company Exxon posted record profits in 2022: 55.7 billion dollars

Natural gas is flared at an Exxon-owned production facility near Carlsbad, New Mexico, United States. (Reuters/Nick Oxford)

Last fall, theThe European Union imposed a tax on energy companies and Exxon filed a lawsuit in December to challenge it.

“ We looked at what happened in the EU and we said it's not legal and it's the opposite of what's needed,” Woods said Tuesday. “What is needed now is more supply. And instead of that, what has been put in place is a penalty to the energy sector in general.”

Exxon also announced progress on its sustainability goals, stating that it achieved its goal of eliminating routine burning in the Permian Basin in the fourth quarter, as part of itseffort to reduce emissions. Flaring is a practice in which oil and gas companies burn excess natural gas rather than capture it.

Exxon's Low Carbon Solutions division recently signed a contract to capture and permanently store up to 2 million metric tons of carbon dioxide per year, according to Woods. The recent passage of the Cut Inflation Act, which incentivizes carbon capture and storage, bolsters those plans, and Exxon plans to invest $17 billion in low-emissions opportunities between 2022 and 2027, up from $15 billion. his previous plan, he said.

(With information from EFE and AP)

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