(ExxonMobil) IRVING, Texas – April 28, 2023 – Exxon Mobil Corporation today announced first-quarter 2023 earnings of US$11.4 billion, or US$2.79 per share assuming dilution. Results included unfavorable identified items of approximately $200 million associated with additional European taxes on the energy sector. Capital and exploration expenditures were US$6.4 billion, on track to meet the company’s full year guidance of US$23 billion to $25 billion.
“Our people’s hard work to execute on our strategic priorities delivered a record first quarter following a record year,” said Darren Woods, chairman and chief executive officer.
“We are growing value by increasing production from our advantaged assets to meet global demand. At the same time, our Low Carbon Solutions team is rapidly growing this new business with an additional carbon capture, transportation and storage agreement that underscores the company’s growing momentum in providing industrial customers with large-scale emission reduction solutions”, Woods added.
First-quarter 2023 earnings were US$11.4 billion compared with US$12.8 billion in the fourth quarter of 2022. Excluding the identified item associated with additional European taxes on the energy sector, earnings were US$11.6 billion compared to US$14.0 billion in the prior quarter. Identified items in the fourth quarter included a higher impact from the additional European taxes on the energy sector, asset impairments, and one-time adjustments related to the Sakhalin-1 expropriation.
Lower liquids and natural gas realizations coupled with the absence of favorable mark-to-market impacts on unsettled derivatives, fewer days in the quarter, and higher scheduled maintenance negatively impacted results sequentially. These impacts were partially offset by higher volumes, mix improvements driven by advantaged project growth, strong operating execution, and disciplined cost management. Results also benefited from the absence of year-end inventory effects and lower corporate and financing costs.
The company remains on track to deliver US$9 billion of structural cost savings by the end of 2023 relative to 2019, having achieved cumulative structural cost savings of US$7.2 billion to date.
Cash flow from operations totaled US$16.3 billion, and free cash flow was US$11.4 billion for the quarter. The company’s debt-to-capital ratio remained at 17% and the net-debt-to-capital ratio declined to about 4%, reflecting a period-end cash balance of $32.7 billion.