ExxonMobil and Chevron, the big oil companies, reduce their billions in earnings

ExxonMobil and Chevron reduce their 2022 earnings in the billions

The multi-billion profits of the two top US-listed oil companies ExxonMobil and Chevron will drop in 2023. Fortunately for the world, oil prices have fallen, skyrocketing in 2022 with the Russian/Ukrainian conflict. And so ExxonMobil's earnings also fell, to 36.01 billion dollars (-35%) compared to the record of over 55.74 billion dollars in 2022, while those of Chevron fell by almost 40%, to 21,369 billions of dollars. And the lower earnings were reflected in both profitability and turnover. ExxonMobil's revenue fell 16% to $344,582 million. Despite this, the Group increased investments and expenses for oil exploration by as much as 3,621 million, to 36,625 million in 2023. Chevron's turnover also fell (-18.4%) to 200,949 million dollars.

ExxonMobil and Chevron, a fourth quarter down

In the fourth quarter, ExxonMobil's revenues fell by 11.6%, to 84,344 million dollars, as did its profit, which fell by 40%, to 7,630 million. “Our strategy has enabled us to deliver industry-leading profits while returning more money to shareholders than our competitors in 2023. These results demonstrate the improvements we have made to our business and reflect our progress through profitable project investments and select divestitures. All with a greater level of efficiency and effectiveness across the company,” said Darren Woods, president and CEO. The company's growth strategy is twofold, on the one hand it turns towards fossil fuels with the largest acquisition in recent decades, and on the other towards the world of electric. In this sense, the Group has announced a purchase agreement with Pioneer Natural Resources in a 59.5 billion dollar operation. Closing expected in Q2 2024 (pending regulatory bodies and Pioneer shareholders). On the other hand, it announced its new business Mobil Lithium, to become a leading producer of US supplies of lithium for the global battery and electric vehicle markets. First productions in 2027 and goal for 2030: to supply around one million electric vehicles per year.

ExxonMobil and Chevron, targeted strategies for growth

Additionally, ExxonMobill purchased Denbury for $4.8 billion in stock to enter the CO² recovery and storage business. The Group now owns the largest carbon dioxide pipeline network in the United States, with 1,300 miles, including 925 miles in Louisiana, Texas and Mississippi. Chevron's revenues also fell, falling by 16% in the fourth quarter, to $47.18 billion, as did profits, which fell by 62%, to $2.259 billion. The company's next move will be the purchase (pending approval) of the independent oil company Hess for 53 billion dollars. This deal represents a bet on Guyana, where oil production is growing the fastest in the world. At the same time, Hess' North Dakota assets in the Bakken formation were purchased. This is one of the largest production areas in the United States thanks to shale oil. And small steps have also been taken to reduce emissions. In short, whichever way you look at it, you can rightly say that “the sun always shines” on the big oil companies.