With higher oil prices, ExxonMobil’s Q3 profits rebounded to $6.8 billion.
According to data released Friday, ExxonMobil’s profitability rebounded in the third quarter as oil and natural gas prices rose, and the company unveiled a new share repurchase program.
During a more severe wave of the Covid-19 outbreak, the US oil business reported earnings of $6.8 billion, compared to a loss of $680 million in the same period last year due to sluggish demand.
Revenues increased by roughly 60% to $73.8 billion.
The findings demonstrated that the oil industry’s outlook has vastly improved from the darkest days of Covid-19, when US oil futures temporarily fell into negative territory.
“With solid operations and cost discipline, as well as better realizations and stronger demand for fuels, all three of our key businesses earned positive profitability during the quarter,” stated Chief Executive Darren Woods.
“The dividend and $4 billion in additional debt reduction were more than covered by free cash flow. As a result of our work in rebuilding the health of our balance sheet, we announced a dividend increase this week, continuing our 39-year streak of annual dividend growth.” Investors are putting more pressure on ExxonMobil and other large corporations to establish low-carbon operations as concerns about climate change grow.
ExxonMobil intends to raise investing in low-emission endeavors “by four times above the last plan,” according to Woods, with part of the funds going to projects that require extra government policy backing.
Carbon capture, which gathers emissions from industrial sources such as refineries and chemical plants and injects them deep into geologic formations for permanent storage, has been a particular highlight for ExxonMobil.
In pre-market trade, shares increased 1.4 percent to $65.23.