Exxon 4Q 2018 earnings down on previous Tax Reform gains

Oil giant ExxonMobil saw its fourth quarter 2018 earnings drop 28 percent compared to the fourth quarter of 2017 as last year’s result was boosted by tax reform.

ExxonMobil on Friday reported earnings of $6 billion, down from $8.3 billion realized in the fourth quarter of 2017. The 4Q 2017 result included a gain of $5.9 billion from the U.S. Tax Reform.
Earnings excluding U.S. tax reform and impairments were $6.4 billion for the fourth quarter of 2018, compared with $3.7 billion in the 4Q of 2017.

CNBC has reported that the quarterly result beat the Wall Street expectations.

Full-year earnings were $20.8 billion, compared with $19.7 billion a year earlier. Excluding U.S. tax reform and asset impairments, earnings were $21 billion for 2018, compared with $15.3 billion in 2017. Full-year cash flow from operating activities of $36 billion, highest since 2014.

In the offshore space, Exxon in the fourth quarter made its tenth discovery offshore Guyana and increased its estimate of the discovered recoverable resource for the Stabroek Block to more than 5 billion oil-equivalent barrels. Exxon’s Guyana successes earned it a leader of the exploration pack “award” for 2018 in Rystad Energy’s recent 2018 oil and gas exploration review.

Back to quarterly numbers, Exxon on Friday said its capex for the quarter had been $7.8 billion of which 6.25 billion was on the Upstream business.

In comparison, Exxon’s 4Q 2017 capex was $9 billion, of which $5.3 billion was spent on the upstream business.

Fourth quarter 2018 liquids production up 4 percent from prior-year quarter driven by Permian growth

“Strong results during a period of commodity price volatility demonstrate ExxonMobil’s ability to deliver superior cash flow in different market environments,” said Darren W. Woods, chairman and chief executive officer. “Our continued focus on long-term fundamentals and portfolio improvements position us well to grow shareholder value. ExxonMobil’s 2018 results further demonstrate our advantages in technology, scale, and integration, providing a strong foundation to successfully compete across commodity price cycles.”