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U.S. oil giant $XOM's 4Q17 profit nearly quintuple to $8.4Bil, up from $1.6Bil during 4Q16. This increase was due to the huge non-cash benefit of $5.94Bil from the tax reform as well as due to the increase in oil prices. Excluding U.S. tax reform and impairments, the company earned $0.88 per share. Revenue came in at $66.5Bil during the quarter.
$XOM announced the completion of a transaction by ExxonMobil Development Africa B.V. to buy a 25% indirect interest in Mozambique's gas-rich Area 4 block from Eni and assume responsibility for midstream operations. ExxonMobil now owns a 35.7% interest in Eni East Africa S.p.A. (to be renamed Mozambique Rovuma Venture).
$XOM 's wholly owned affiliate, ExxonMobil Exploration and Production Mauritania Deepwater Ltd., entered into a production sharing contract with the government of Mauritania for three deepwater offshore blocks C22, C17 and C14 that are located on an average of 124 miles.
$XOM's BoD elected Neil Chapman to the position of SVP and member of its management committee. As successor to Chapman, the board also appointed John Verity as president of ExxonMobil Chemical Co. Both assignments are effective Jan. 1, 2018. Verity is now SVP of polymers, ExxonMobil Chemical Co.
$XOM said it will combine its refining and marketing operations into a single company, ExxonMobil Fuels & Lubricants Co., in 1Q18. Bryan Milton, currently president of ExxonMobil Fuels, Lubricants & Specialties Marketing Co., has been appointed president of the combined division by $XOM's BoD, effective Jan. 1, 2018.
Volume and mix effects increased $XOM's upstream earnings by $20MM. Upstream unit profitability during the quarter was $4.53 per barrel. Unfavorable volume and mix effects decreased the company's downstream earnings by $160MM, mainly due to lower throughput from storm impact.
$XOM's global rig count improved during 3Q17, primarily due to the higher activity in North America. The company's refining margins also improved with increased global distillate demand while global chemical commodity margins softened, due to increase in feed and energy costs.
During 3Q17, $XOM's Upstream earnings rose to $1.6Bil, helped by increased commodity prices. Downstream also reported a increase to $1.5Bil, helped by higher refining margins. Chemical earnings fell to $1.1Bil, due to lower commodity margins and hurricane impacts.
On an oil-equivalent basis, $XOM's production rose 2% from 3Q16. Excluding entitlement effects and divestments, oil-equivalent production remained at 2% higher than the prior year. Capital and exploration expenditures during the quarter were $6Bil, including the latest aromatics plant acquisition in Singapore.
U.S. oil company $XOM reported 50% jump in its 3Q17 earnings, despite the impact of Hurricane Harvey that had led to the temporary closure of a few Gulf coast facilities. Earnings rose to $3.9Bil, or $0.93 per share, from $2.7Bil, or $0.63 per share during 3Q16. This increase was due to improved commodity prices. Revenue jumped 13% to $66.1Bil.
Benefiting from an upturn in downstream activities, $CVX’s 3Q17 revenue rose 20% to $36Bil. The strong topline and gains from asset sales pushed up earnings by 50% to $2Bil or $1.03 per share, which beat estimates. Upstream operations of the energy firm remained subdued, mainly due to hurricanes. Chevron’s rival $XOM reported a $4Bil profit in 3Q.
$XOM made a fifth new oil discovery Turbot, after drilling Turbot-1 well offshore Guyana. The is the latest discovery adding to the previous discoveries that include Liza, Payara and Snoek and Liza Deep. An additional well on the Turbot discovery is being planned for 2018.
$XOM added 22,000 acres to its Permian Basin portfolio since May through a series of acquisitions and acreage trades. Located in the highly prolific, stacked oil pay zones of the Delaware and Midland Basins, the new acreage adds to the company's existing 6Bil barrels of oil equivalent Permian Basin resource base.