Exxon Mobil (NYSE:XOM) posted strong Q4 2023 earnings on Feb. 2, but shares still fell in pre-market trading. Revenue of $84.3 billion missed expectations by just 1%, and the company’s earnings per share of $2.48 outperformed predictions of $2.21 by 12%.
Energy trading was particularly noteworthy. The Houston-based firm posted a $1.14 billion gain from its trading arm, offsetting a $410 million profit reduction from declining oil prices. This performance is noteworthy considering Exxon’s relatively cautious approach to energy trading, a sector it only entered in 2018.
Management also highlighted its steps toward climate-friendly solutions. By launching the MobilTM Lithium business, Exxon aims to supply up to 1 million EVs per year with lithium by 2030. Meanwhile, the acquisition of Denbury gives Exxon the largest owned and operated CO2 pipeline network in the U.S. These efforts signal a notable strategic pivot for Exxon away from traditional fossil fuels.
Still, Exxon remains a long way from its goals. The company’s Q4 earnings revealed a record annual refinery throughput, with notable growth seen in its Guyana and Permian production sectors. Upstream production also continues to rise. Q4 net production of fossil fuel equivalents rose 3.6% to 2.55 million barrels per day. Though management continues to emphasize its pivot to clean energy, Exxon’s results show it remains behind many counterparts in making the switch.
On the date of publication, Thomas Yeung did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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