MOSCOW (MRC) -- Exxon Mobil Corporation, the world's petrochemical major, has reported Q4 FY 2021 earnings that were mixed, according to Investopedia.
Adjusted earnings per share (EPS) came in at USD2.05, above what analysts had forecast for the quarter and climbing to the highest levels in at least four years. However, Exxon's revenue gains, while substantial, came up short compared to predictions. Analysts had expected the company's revenue to roughly double to USD90.8 billion amid recovery from the COVID-19 pandemic. Exxon's revenue instead climbed by 82.6% year over year to USD85.0 billion. Additionally, the company posted its highest cash flow from operating activities since 2012, indicating a robust recovery process.
Investors look to the key metric of net income for ExxonMobil's upstream segment, which is one of the company's three main business segments and a strong indicator of its overall success. Upstream operations are involved in the exploration and development of oil and natural gas properties as well as the extraction and production of crude oil and natural gas. ExxonMobil's upstream segment generated USD6.1 billion in net income for Q4 FY 2021, slightly below the predicted USD6.2 billion for the quarter but the best performance in this area since Q4 FY 2019.21
ExxonMobil shares fell by about 0.8% in extended hours trading immediately following the earnings release but quickly recovered. The company's stock has consistently outperformed the market in the past year and has dramatically widened that gap with a strong rally early in 2022. As of Feb. 1, 2022, ExxonMobil shares have provided a one-year trailing total return of 83.1%, well ahead of 19.6% for the S&P 500.3 In its Q4 FY 2021 earnings statement, ExxonMobil did not provide forward guidance.
Chief Financial Officer (CFO) Kathy Mikells said during a conference call that the increase in cash flow will allow ExxonMobil to accelerate the schedule for the company's planned 10 billion share buyback. The plan initially was announced as taking place over two years. Now, the company expects the buybacks to be “faster than that 12-24 month pace,” Mikells said.
As MRC reported before, earlier this month, ExxonMobil and SABIC successful started up Gulf Coast Growth Ventures world-scale manufacturing facility in San Patricio County, Texas. The new facility will produce materials used in packaging, agricultural film, construction materials, clothing, and automotive coolants. The operation includes a 1.8 MM metric tpy ethane steam cracker, two polyethylene (PE) units capable of producing up to 1.3 MM metric tpy, and a monoethylene glycol (MEG) unit with a capacity of 1.1 MM metric tpy.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC''s ScanPlast report, Russia's estimated PE consumption totalled 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.
ExxonMobil is the largest non-government owned company in the energy industry and produces about 3% of the world's oil and about 2% of the world's energy.