Exxon Mobil Corporation (NYSE: XOM) reported fourth quarter profits of $9.4 billion, up 2% from quarter four of the previous year.
Fourth quarter earnings per share were $1.97, up 6% from $1.85 per share, a year earlier, while revenue rose 15.6% to $121.6 billion, narrowly surpassing analysts’ estimates of $119.7 billion.
Exxon attributes its quarterly gains to the 25% spike in oil prices seen in the last three months of 2011.
It seems the rise in oil prices largely compensated for the 9% decrease in oil and gas production, despite the global gas giant’s record spending of $36.8 billion on crude and natural gas exploration projects in 2011, up 14% from 2010.
After $10 billion of capital and exploration expenditures with little ROI, the Irving, Texas-based company also cited a decline in its refining and chemical operations’ earnings.
Exxon CEO and chairman, Rex Tillerson, provided a more optimistic synopsis of quarter-four earnings and expenditures:
ExxonMobil recorded strong results while investing at record levels to develop new supplies of energy that are critical to meeting growing world demand, and supporting economic recovery and growth.
Exxon shares fell 1.2%, to $84.50, in premarket trading Tuesday morning.
Until next time,