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ExxonM CEO boasts of record earnings despite lower oil prices
Kaieteur News- Darren Woods, Chairman and Chief Executive Officer (CEO) of American oil giant, ExxonMobil recently boasted of the company’s record performance in 2024, despite the decline in oil prices.
Chairman and Chief Executive Officer (CEO), Exxon Mobil, Darren Woods
In a SEC filing on Monday, Woods told shareholders of the Fortune 500 Company that in 2024, ExxonMobil outperformed other integrated oil companies (IOCs) across the board with US$33.7 billion of earnings, $55.0 billion of cash flow from operations, and $12.1 billion of structural cost savings, as compared to 2019.
According to Woods, “The past year provided the best look yet at the power of our transformed Company…our earnings were the third highest in the past decade, even as oil prices softened and chemical margins remained at bottom-of-cycle conditions.”
He also highlighted that growth in cash flow from the company’s operations were 8 percentage points above Exxon’s nearest competitor, underscoring the improvements over the past five years. Furthermore, over US$125B was distributed to shareholders during the period.
Brent crude oil prices averaged just over US$82 per barrel in 2023. It fell to around US$80 in 2024 according to Statista.
While the company boasted of its increased cash flow over the past five years, it would be important to note that Guyana commenced production activities in 2019, five years ago.
Some analysts believe that the turnaround of the company’s finances is linked to the startup of petroleum activities in the South American nation, especially due to the favourable terms extended to the oil giant in the sweetheart deal with Guyana.
As at the end of March 2025, Guyana received a total of US$6,655,222,302 in revenue from the offshore petroleum operations. Guyanese have long argued that the country should receive a greater share of the revenue generated from its resources.
According to the 2016 Production Sharing Agreement (PSA) Guyana receives 2% of oil produced sold in the Stabroek Block. It also receives a profit share equivalent to 12.5% after ExxonMobil deducts 75% monthly towards expenses and takes another 12.5% as its profit.
In 2025, although Guyana’s daily production is expected to climb, the country will see a decrease in earnings from the sector, as a result of a projected 10.9% decline in oil price. This was explained by Finance Minister, Dr. Ashni Singh during the presentation of this year’s Budget.
He said, “Oil prices contracted by 2.3 percent to average US$80.7 per barrel in 2024, primarily due to slowing global demand, particularly in China.”
The Minister was keen to note that this trend is expected to continue this year as “crude oil prices are forecasted to decline by a further 10.9 percent to US$71.9 per barrel, with global supply expected to exceed demand.”
With oil prices likely to dip further soon, largely driven by new measures announced by U.S President, Donald Trump, Guyanese continue to worry and express frustration over government’s refusal to engage the company for a more balanced agreement.
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