ExxonMobil has earned US$2.7 billion or US$0.64 per share in the 2021 first quarter, a stunning turn around when one considers their loss of US$610 million in the corresponding period last year at the height of the COVID-19 pandemic.
According to a press release from Businesswire, ExxonMobil also had a cash flow of US$9.3 billion, which fully funded its dividend and capital expenditures and reduced debt by over US$4 billion. Additionally, the company has been successful in reducing its costs.
ExxonMobil Chairman Darren Woods
“Exxon Mobil announced estimated first quarter 2021 earnings of $2.7 billion, or $0.64 per share assuming dilution, compared with a loss of $610 million in the first quarter of 2020. Results included unfavorable identified items of $31 million, or $0.01 per share assuming dilution. First quarter capital and exploration expenditures were $3.1 billion, $4 billion lower than the first quarter of 2020,” Businesswire said.
When it comes to oil production, Businesswire explained that oil-equivalent production was 3.8 million barrels per day, up three per cent from the fourth quarter of 2020. It noted that when one excludes entitlement effects, Government mandates and divestments, oil-equivalent production was up by 2 per cent.
The release featured a quote from ExxonMobil Chairman Darren Woods, who noted that the strong first-quarter results are reflective of higher commodity prices and structural reforms geared at reducing costs and prioritising investments.
“Cash flow from operating activities during the quarter fully covered the dividend and capital investments, and we strengthened the balance sheet by reducing debt. We also made progress on our energy transition strategy by launching our new Low Carbon Solutions business, which is initially working to develop innovative, large-scale carbon capture and storage concepts, including the evaluation and advancement of more than 20 new opportunities,” he said.
The Stabroek Block offshore Guyana is 6.6 million acres (26,800 square kilometres). ExxonMobil affiliate Esso Exploration and Production Guyana Limited is operator and holds 45 per cent interest in the Stabroek Block. Hess Guyana Exploration Ltd holds 30 per cent interest and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds 25 per cent interest.
Exxon has so far made 19 oil discoveries offshore Guyana, discoveries which have been credited with being a major source of cash flow for the oil giant. Only last week, oil was found in Exxon’s Uaru-2 well.
Oil was found in the first Uaru well in January 2020, making it Exxon’s 16th discovery in Guyana’s waters. ExxonMobil has said it anticipates at least six projects offshore Guyana will be online by 2027.
In March 2021, ExxonMobil secured a sixth drillship, the Noble Sam Croft, for exploration and evaluation drilling activities offshore Guyana. A fourth project, Yellowtail, has been identified within the block with an anticipated start-up in late 2025 pending Government approvals and project sanctioning. This project will develop the Yellowtail and Redtail fields, which are located about 19 miles (30 kilometres) southeast of the Liza developments.
The start-up of Liza Phase 2 remains on target for 2022, as the Liza Unity FPSO prepares to sail away from Singapore to Guyana later this year. The Unity FPSO has a production capacity of 220,000 barrels of oil per day at peak rates. The hull for the Prosperity FPSO vessel, the third project at the Payara Field, is complete, and topsides construction activities have commenced in Singapore with a startup target of 2024.
These new projects continue to drive investment in the Guyanese economy. More than 2300 Guyanese are now supporting project activities on and offshore, which reflects a more than 20 per cent increase since the end of 2019. ExxonMobil and its key contractors have spent approximately US$388 million with more than 800 local companies since 2015.
