Exxon Mobil Corp.’s fourth-quarter earnings edged up 1.6% as high oil prices offset impacts from lower production and weak refining margins.
The company has been distancing itself from the refining and marketing, or downstream, business globally. A number of major energy companies have been repositioning amid a boom in alternative shale energy fields and a glut of refining capacity. However, big investments in shale natural-gas resources, such as Exxon’s $25 billion acquisition of XTO Energy in 2010, remain a bet for the future as natural-gas prices remain at historic lows.
Exxon Mobil, the world’s largest publicly traded oil company by market value, reported a profit of $9.4 billion, or $1.97 a share, up from $9.25 billion, or $1.85 a share, a year earlier.
Revenue increased 16% to $121.61 billion. Analysts polled by Thomson Reuters most recently projected earnings of $1.96 on revenue of $119.7 billion.
Exploration and production earnings were up 18% mostly owing to higher prices as production fell 9% on an oil-equivalent basis.
Refining and marketing slumped 63% on weaker refining margins and lower petroleum product sales.
During the quarter, Exxon Mobil repurchased 69 million common shares at a cost of $5.4 billion, including $5 billion to reduce shares outstanding.
On Friday, Chevron Corp. reported that its fourth-quarter earnings declined 3.2%, missing expectations, amid losses at its refining business. On Thursday, ConocoPhillips said its fourth-quarter profit rose 66% as higher oil prices and asset sales helped offset weak refining results.
