ExxonMobil Says Earnings Higher in 2018
US super-major ExxonMobil said February 1 its estimated earnings in 2018 were slightly higher than a year earlier, at $20.8bn compared to $19.7bn, but 4Q 2018 earnings were off year-on-year, at $6bn compared to $8.4bn.
Upstream US earnings in the fourth quarter – excluding the impacts of US tax reform and impairments – increased to $549mn from a loss of $60mn a year ago, reflecting higher natural gas prices and liquids volume growth. Non-US upstream earnings for the quarter rose to $3.16bn from $2.58bn on higher natural gas prices and favourable tax and foreign exchange impacts, partially offset by lower liquids prices.
Natural gas and LNG prices strengthened in the fourth quarter, the company said, with natural gas volumes supported by stronger seasonal demand in Europe.
As quarterly results were being released, media reports were suggesting that ExxonMobil and Qatar Petroleum were preparing to take a final investment decision in the coming weeks on their $10bn plan to convert the Golden Pass LNG import and regasification terminal in Texas to a 16.5mn metric tons/year export facility. ConocoPhillips, the third partner in the existing terminal, plans to sell its 12.4% stake – most likely to ExxonMobil, which is now a 17.4% partner – and will not participate in the conversion.
Global natural gas production averaged 9.97bn ft3/day in 4Q 2018, down from 10.44bn ft3/day in 4Q 2017, while full-year global gas output slipped to 9.4bn ft3/day from 10.21bn ft3/day.