At USD 2.79 billion, net income beat estimates by analysts surveyed by Bloomberg by some USD 1 billion, as well as the Q3 earnings Exxon reported last Friday, which stood at USD 2.65 billion.
Cost optimisations as well as the company’s merger with BG in January played a key part in the strong showing, CEO Ben van Beurden said in a statement.
“Our underlying operational costs in 2016 are already at an annualised run rate of US 40 billion, USD 9 billion lower than Shell and BG costs in 2014,” Van Beurden said. “They’re set to reduce further on a like-for-like basis as deal synergies and improvements are delivered in full.”
The company projects that capital investment will be some USD 29 billion this year, down from 2014 levels of about USD 47 billion for Shell and BG together. In 2017, cost savings are expected to bring capital investment further down to USD 25 billion.
“But lower oil prices continue to be a significant challenge across the business, and the outlook remains uncertain,” Van Beurden added.
The UK's hydrocarbons regulator has awarded 31 new exploration licences in the country's North Sea waters, Reuters reported on Friday Read More
ExxonMobil announced the closing of its USD 60-billion acquisition of Pioneer Natural Resources on Friday, a move that solidifies its… Read More
BP-Eni joint venture Azule Energy has entered a strategic farm-in agreement with Rhino Resources in Namibia's offshore Orange Basin, the… Read More
Africa-focused energy group Chariot has spudded the RZK-1 exploration well on the Gaufrette prospect at the Loukos Onshore licence in… Read More
Touchstone Exploration has acquired Trinidad-focused Trinity Exploration & Production in an all-shares deal, the Canadian upstream player said on Wednesday Read More
ExxonMobil is "optimistic and pushing forward" with the Rovuma LNG project in Mozambique and eyes an FID by the year's… Read More
This website uses cookies.