Exxon Mobil Corporation at the weekend announced fourth quarter 2017 earnings of $8.4 billion and an estimated 2017 earnings of $19.7 billion, compared with $7.8 billion earned in 2016, just as Chevron reported fourth quarter earnings of $3.1 billion and annual earnings of $9.2 billion.
According to ExxonMobil’s results, the US federal tax reform in the fourth quarter resulted in a non-cash earnings gain of $5.9 billion, due to revaluation of deferred income tax balances.
Non-cash asset impairments of $1.5 billion were recorded during the year, mainly relating to assets in the Upstream.
“The impact of tax reform on our earnings reflects the magnitude of our historic investment in the U.S. and strengthens our commitment to further grow our business here,” said chairman and chief executive officer, Darren W. Woods.
“We’re planning to invest over $50 billion in the U.S. over the next five years to increase production of profitable volumes and enhance our integrated portfolio, which is supported by the improved business climate created by tax reform,” he added.
Fourth quarter upstream earnings were $8.4 billion, including $7.1 billion from US tax reform and asset impairments of $1.3 billion.
Fourth quarter earnings excluding US tax reform and impairments increased $1 billion, to $2.5 billion, driven by higher prices as liquids realisations increased more than $10 per barrel.
Upstream earnings were $8.4 billion in the fourth quarter of 2017, up $9 billion from the fourth quarter of 2016.
Higher liquids and gas realisations increased earnings by $1.2 billion. Lower volume and mix effects decreased earnings by $110 million. All other items increased earnings by $7.9 billion driven by U.S. tax reform impacts of $7.1 billion, lower asset impairments of $847 million, and gains from asset management activity.
In a related development, Chevron Corporation reported earnings of $3.1 billion for fourth quarter 2017, compared with $415 million in the 2016 fourth quarter.
Included in the quarter were non-cash provisional tax benefits of $2.02 billion related to US tax reform and a non-cash charge of $190 million related to a former mining asset.
Foreign currency effects decreased earnings in the 2017 fourth quarter by $96 million.
Full-year 2017 earnings were $9.2 billion compared with a loss of $497 million in 2016. Included in 2017 were non-cash provisional tax benefits of $2.02 billion related to US tax reform, gains on asset sales of $1.44 billion, and impairments and other non-cash charges of $840 million. Foreign currency effects decreased earnings in 2017 by $446 million.
Subscribe to TN Daily!
TopNaija.ng is expanding! Content Interns & Bloggers Needed!