The giant oil group recorded profits in the third quarter amounting to $9.1 billion, less than half the level recorded in the period that witnessed a significant rise in fuel prices in 2022. Revenues fell by 19 percent to $90.8 billion.
The decline in profits reflected a decline in commodity prices compared to the same period a year ago, when the Russian-Ukrainian war led to higher oil and natural gas prices.
However, ExxonMobil recorded larger quantities of oil and natural gas compared to the second quarter, and said that 2023 investments, capital spending, and exploration will be at the top of its expectations, “as the company seeks value-accumulating opportunities,” according to its statement on revenues.
The company’s CEO, Darren Woods, said: “We achieved another quarter of strong operational performance, revenues and cash flow, adding a net equivalent of about 80,000 barrels per day to support global supplies.”
Like its competitor Chevron, Exxon Mobil has faced criticism from environmental advocates after it announced large agreements in recent weeks to buy smaller oil producers in a big bet on continued reliance on fossil fuels despite concerns related to climate change.
In its press release, ExxonMobil described its approach as a balanced strategy, noting that its announcement of the acquisition of Denbury Company is a bet on carbon capture and sequestration, which it considers to be the solution to climate change.
ExxonMobil reported that its acquisition of Pioneer Natural Resources for a contract worth $60 billion will boost oil production and “accelerate Pioneer’s path toward net zero” emissions.
Woods said, “The two (acquisitions) that we announced further confirm our continued commitment to an equation based on continuing to meet the world’s needs for energy and basic products while reducing emissions.”
He added, “Pioneer will help us increase supplies in line with the world’s energy needs with lower carbon intensity, while Dunbury improves our competitive position to economically reduce emissions in sectors that are difficult to decarbonize.”
#ExxonMobils #profits #decline #due #oil #prices