Exxon posts record $59 billion profit in 2022, up 157% from 2021
Yahoo Finance’s Ines Ferre joins the Live show to discuss Exxon Mobil’s record profit earnings.
Video Transcript
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- Exxon Mobil smashed profit estimates in 2022, rising 157% to a record $59 billion. That works out to around $6.3 million per hour. Yahoo Finance's Ines Ferré joins us now to discuss. I had to catch myself for a second there as I was reading that, Ines.
INES FERRE: Talk about profit, yeah, this was a record year for ExxonMobil. $56 billion, as you just mentioned, beating earnings expectations for the 9th time in over 10 quarters. Adjusted earnings per share $3.40. Also, ExxonMobil talking about taking a $1.3 charge because of European windfall taxes and also asset impairments.
But look, it was a record year for one of the so-called super majors. Returning cash to shareholders has been something that these big companies, these big oil companies have really wanted to do, versus, also, of course, the political criticism of investing more in order to bring down the price of oil and also to bring down the price for gasoline for Americans, et cetera.
So much was made of last week's Chevron's announcement about the $75 billion share buyback program. ExxonMobil, though, they have increased their buyback program several times last year, in December of 2022, to $50 billion for their back-buy program. So they're staying put for now. No new dividends announced, $0.91 per share for dividends, no additional buybacks announced. They have already announced their big one back in December. And you can see the stock reaction, which was down right now. But nevertheless, a good year for ExxonMobil.
- Yeah, and it's interesting about that buyback, because even though Exxon has given back so much cash to shareholders, they wanted more, didn't they? I mean, it seems like that's why the stock is down today, because somehow there was this expectation that they would follow Chevron, and they haven't because they've already been giving out so much cash to shareholders
INES FERRE: Yes, they did. And, you know, one other thing that Wall Street is also taking a look at is also, though, investment in the Permian Basin. And both ExxonMobil and Chevron, they announced that they will be growing their investments in the Permian Basin but compared to the previous year, not as much. So that also could be something that is weighing on the stock a bit.
But look, the analysts that I've spoken to that have talked about ExxonMobil, they really look at this company. One analyst comparing it, talking about flexibility, plenty of investment options. They do have a differentiated upstream project as well that they highlight. So an upstream is exploration, drilling.
So look. It is still a Wall Street favorite. These stocks have done really well. ExxonMobil last year, about 80% upside that you saw gains on ExxonMobil. So you're looking at, Chevron was more than 50% last year. So you're still looking at some good performance. And going forward, maybe not as much but still good performance going forward.
- And a 3% yield on top of it. They're a 3 and 1/4% yield.
- That's right. Good analysis, appreciate it.
