U.S. oil major ExxonMobil has reported $2.35 billion in earnings for the first quarter of 2019, a 49 percent drop versus the prior year’s 1Q earnings of $4,65 billion.
In the U.S. upstream segment, the company earned $96 million, a 333 million drop compared to 429 million recorded last year, citing lower liquids prices, higher growth-related expenses and an asset impairment charge (-115), partly offset by liquids volume growth.
The international upstream segment came in at $2,78 billion, down from last years’ $3 billion which had included a $366 million gain from sale of Scarborough field stake in Australia to Woodside.
Exxon also said the international upstream segment results were affected by higher growth-related expenses and an asset impairment charge (43 million), partly offset by higher gas realizations and favorable tax impacts.
As for the upstream business highlights for the quarter, Exxon said: “Crude prices strengthened during the quarter but remained weaker, on average, than the fourth quarter of 2018. North American differentials narrowed, largely as a result of imposed production curtailments in Canada and additional takeaway capacity in the Permian. Natural gas prices were impacted by warmer weather.”
Oil-equivalent production was 4 million barrels per day, up 2 percent from the first quarter of 2018. Upstream liquids production grew by 5 percent compared with the first quarter of 2018, driven by Permian unconventional growth of nearly 140 percent, Exxon added.
“Production volumes benefited from continued unconventional growth. However, first quarter production was negatively impacted by lower Kearl output in Canada and downtime,” Exxon said.
Exxon said it had distributed $3.5 billion in dividends to shareholders during the quarter.
Capital and exploration expenditures were $6.9 billion, up 42 percent from the prior year, reflecting key investments in the U.S. Permian Basin.
“Solid operating performance in the first quarter helped mitigate the impact of challenging Downstream and Chemical margin environments. In addition, we continued to benefit from our integrated business model,” said Darren W. Woods, chairman and chief executive officer. “We are making strong progress on our growth plans and expect to deliver sustained value for our shareholders. The change in Canadian crude differentials, as well as heavy scheduled maintenance, similar to the fourth quarter of 2018, affected our quarterly results.”
When it comes to the offshore segment, Exxon highlighted its recent discovery off Cyprus for which could hold approximately 5 trillion to 8 trillion cubic feet (142 billion to 227 billion cubic meters), but needs further analysis to determine the resource potential.
The company also reminded of its two offshore discoveries off Guyana made during the quarter, and also of the one in April at the Yellowtail-well, which was the company’s 13th find in the block since 2015. First oil from the giant block is slated for the first quarter of 2020 via the Liza Destiny FPSO which is currently being completed in Singapore.
Offshore Energy Today Staff
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