Exxon Mobil (NYSE: XOM) shares fell Friday morning after the company was hit with a USD3.4 Billion tax charge related to its exit from Russia. Nevertheless, its 2022 first-quarter profits surged despite the action.
The multinational oil and gas company reported earnings of USD2.07 per share, compared to the expected USD2.23 a share. Meanwhile, revenue totaled to USD90.50 Billion, higher than analysts anticipated USD83.57 Billion.
“The quarter illustrated the strength of our underlying business and significant progress in further developing our competitively advantaged production portfolio,” said Darren Woods, chairman, and chief executive officer. “Earnings increased modestly, as strong margin improvement and underlying growth was offset by weather and timing impacts. The absence of these temporary impacts in March provides strong, positive momentum for the second quarter.”
The quarterly results come amid a rise in oil and gas prices as crude surged to its highest level since 2008. The changes are a consequence of Russia’s invasion of Ukraine, which ultimately instilled supply fears. Furthermore, Exxon’s first-quarter capital and exploration expenses amounted to USD4.9 Billion within the period, as oil-equivalent production fell 4% in the quarter to 3.7 million barrels a day.
“First-quarter cash increased by $4.3 billion compared to the fourth quarter of 2021, as strong cash flow from operations more than funded capital investment, additional debt reduction, and shareholder distributions in the quarter. Free cash flow in the quarter was approximately $11 billion,” the company said in a statement.