Exxon Mobil wins thanks to higher margins and profit increase
Net profit of almost USD 9 billion

Exxon Mobil (NYSE:XOM) stock rose 1.5% in premarket trading Tuesday after the company beat fourth-quarter earnings estimates on higher margins and capacity utilization.
With crude oil and gas prices rising and demand recovering in the second half of last year, Exxon returned to nearly $9 billion in net income, compared to a $20 billion loss in the same period last year.
With that in mind, Exxon said it has initiated the $10 billion share buyback program it announced in October and will complete it over a period of 12-24 months.
Shortages in Europe and Asia have pushed crude oil and gas prices to multi-year highs. Last week, crude oil broke through $90 a barrel for the first time since 2014. Integrated energy companies like Exxon and Shell (LON:RDSa), which are active in both upstream and downstream businesses, benefit the most from such a booming market.
In the upstream business, which includes exploration for crude oil and gas, average revenues for crude oil increased 8% from the third quarter. Natural gas prices rose 63% sequentially.
Margins improved in the refining business, which includes the production of fuels for end use. Refinery throughput, a measure of utilization, was the highest this quarter since 2013.
Revenue rose 83% to nearly $85 billion in the fourth quarter, but it fell short of estimates.
Mitigating the disappointment, the company said it will surpass its goal of reducing operating expenses by $6 billion by 2023, having already hit nearly $5 billion. The goal was set for 2019.





