Latest update January 30th, 2025 6:10 AM
Latest News
Stabroek Block remains key to success as ExxonM boasts of US$17.8B profits in second quarter alone
As Americans, Guyanese struggle with inflation…
Kaieteur News – Even as Americans and Guyanese continue to struggle with the effects of inflationary pressures on their pockets, giants like Exxon Mobil Corporation have emerge unscathed as the multinational announced on Friday that it was swimming in estimated second-quarter 2022 earnings totalling US$17.9 billion, or US$4.21 per share.
ExxonMobil Corporation Chairman and CEO, Darren Woods
The company said second-quarter results included a favourable identified item of nearly US$300 million associated with the sale of its Barnett Shale Upstream assets. It noted that capital and exploration expenditures were US$4.6 billion in the second quarter and US$9.5 billion for the first half of 2022.
“Earnings and cash flow benefited from increased production, higher realizations, and tight cost control,” said Darren Woods, Chairman and Chief Executive Officer. He added, “Strong second-quarter results reflect our focus on the fundamentals and the investments we put in motion several years ago and sustained through the depths of the pandemic.”
Woods further noted that key to its success is continued investment in its advantaged portfolio, including Guyana, the Permian, global Liquefied Natural Gas (NGL), and in its high-value performance products, along with efforts to reduce structural costs and improve efficiency.
The CEO said, “We’re also helping meet increased demand by expanding our refining capacity by about 250,000 barrels per day in the first quarter of 2023 – representing the industry’s largest single capacity addition in the U.S. since 2012. At the same time, we’re supporting the transition to a lower-emission future, growing our portfolio of opportunities in carbon capture and storage, biofuels, and hydrogen.”
Turning to details of its financial performance, Exxon said its second-quarter earnings of US$17.9 billion is significant when compared with US$5.5 billion that was made in the first quarter of 2022. Excluding identified items, it said earnings of US$17.6 billion increased US$8.7 billion from the prior quarter, driven by a tight supply/demand balance for oil, natural gas, and refined products, which have increased both natural gas realizations and refining margins well above the 10-year range.
It was further noted that its cash increased by US$7.8 billion in the second quarter, as strong cash flow from operating activities more than covered capital investments and shareholder distributions. Also, free cash flow in the quarter totaled US$16.9 billion while shareholder distributions were US$7.6 billion for the quarter, including US$3.7 billion of dividends.
In Guyana where ExxonMobil’s subsidiary operates the Stabroek Block, there are four sanctioned projects. The Liza Phase 1 development, which began production in December 2019, reached its new production capacity of more than 140,000 gross barrels of oil per day in the second quarter of 2022 following production optimization work.
The Liza Phase 2 development, which achieved first oil in February 2022 utilizing the Liza Unity FPSO, reached its production capacity of approximately 220,000 gross barrels of oil per day earlier this month. The third development at Payara is on track to come online in late 2023 utilizing the Prosperity FPSO with a production capacity of approximately 220,000 gross barrels of oil per day.
The fourth development, Yellowtail, will be the largest development to date and is expected to come online in 2025, utilizing the ONE GUYANA FPSO with a production capacity of approximately 250,000 gross barrels of oil per day. At least six FPSOs with a production capacity of more than 1 million gross barrels of oil per day are expected to be online on the Stabroek Block in 2027, with the potential for up to 10 FPSOs to develop gross discovered recoverable resources.
The Stabroek Block is 6.6 million acres. ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator of the oil rich concession and holds 45 percent interest. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Petroleum Guyana Limited holds 25 percent interest.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
The third parties will not survive this year’s elections
Peeping Tom… Kaieteur News- The fate of third parties in this year’s general and regional elections is as predictable... more
OAS Secretary General Election and renewed OAS Consensus
Antiguan Barbudan Ambassador to the United States, Sir Ronald Sanders By Sir Ronald Sanders Kaieteur News- The upcoming election... more
Weekend Cartoon
