Exxon Mobil Profit Surges From Tax Law, But Misses Estimates

By Allison Prang 

Exxon Mobil Corp. reported a more than $8 billion profit for its latest quarter as it recorded a $5.94 billion benefit from the new tax law.

The company reported a profit of $8.38 billion, or $1.97 a share, up from earnings for the same quarter a year ago of $1.68 billion, or 41 cents a share. But on an adjusted basis, which omits the bump from the new tax law and impairments, earnings fell 2.2% to $3.73 billion, or 88 cents a share.

Analysts polled by Thomson Reuters were expecting adjusted earnings per share of $1.04.

World-wide net production of crude oil and other liquids fell 5.6% in the quarter compared with a year ago, while natural gas production rose slightly.

Refinery throughput fell world-wide by 3.8%, while petroleum product sales and chemical prime product sales both rose globally.

Shares, which had gained 6.7% over the past year, fell 2.7% in premarket trading.

Total revenue rose 18% to $66.52 billion. Money spent on capital expenditures and exploration rose 86% to $9 billion.

Oil companies have recently jumped back into projects, but not as extensively as they have in the past as the industry works to recover from a tough few years. Exxon has said that over five years, it wants to spend $50 billion to increase business in the U.S.

Exxon narrowed its losses in its U.S. production business to $60 million on an adjusted basis from $193 million a year ago. Outside of the U.S., upstream earnings rose 53% on an adjusted basis to $2.58 billion.

Write to Allison Prang at [e-mail]

(END) Dow Jones Newswires

February 02, 2018 09:26 ET (14:26 GMT)

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