Guyana helps ExxonMobil close 2023 fourth quarter with US$7.6 Billion profits

Feb 03, 2024 ExxonMobil, News, Oil & Gas

ExxonMobil CEO, Darren Woods

Kaieteur News – American oil giant, ExxonMobil Corporation announced on Friday that it made a jaw dropping US$7.6 billion in profits for the fourth quarter of 2023, backed by accelerated production offshore Guyana. ExxonMobil currently leads a consortium in the Stabroek Block where it is producing over 580,000 barrels of oil per day via three platforms.

The company’s US$7.6B profits reflect a decrease when compared with the fourth-quarter 2022 earnings of US$12.8B. Be that as it may, the company’s top brass deemed its 2023 fourth quarter performance to be a strong finish to that year.

Expounding on its financial health, the company disclosed that its fourth-quarter results included a loss of US$2.3 billion. A huge portion of this related to impairment as a result of regulatory obstacles in California that prevented its production and distribution assets from coming back online. It said impairments were partly offset by favourable tax and other divestment-related items.

With respect to its upstream business, for the fourth-quarter, Exxon said its earnings were US$4.1 billion. Exxon said this reflects a decrease of US$2.0 billion from the third quarter mainly from the impairment of oil and gas assets in California.

That aside, Exxon said there were higher volumes mainly from its Guyana and Permian Basin assets in the USA. It noted that net production in the fourth quarter was 3.8 million oil-equivalent barrels per day, an increase of 136,000 oil equivalent barrels per day.

Where Guyana is concerned, Exxon told shareholders that Payara, the third Guyana development in the Stabroek Block, started up in November ahead of schedule with production reaching nameplate capacity of 220,000 barrels per day in mid-January.

During his remarks, Exxon’s Chairman and Chief Executive Officer (CEO), Darren Woods said the foregoing performance is a testament to the company’s execution excellence across the business. For the full year 2023, he said the company earned US$36.0 billion, or US$8.89 per share assuming dilution, a performance he finds to be “top tier.”

“These results demonstrate the fundamental improvements we’ve made to our business, reflecting our progress in high-grading our portfolio through investments in advantaged projects and select divestments, while, at the same time, driving a higher level of efficiency and effectiveness throughout the business,” the CEO said.

With three projects running successfully in Guyana, and well ahead of their designed production capacity, Woods expressed excitement about the prospects of a fourth project. That development called Yellowtail is set to come on stream next year and produce 250,000 barrels of oil per day. Overall, Exxon and its partners, Hess Corporation and CNOOC Petroleum Guyana Limited, are targetting an output of 1.3 million barrels of oil per day by 2027.

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CNOOC, ExxonMobil, Guyana, Hess, Stabroek Block

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