Irving’s Exxon tops earnings estimate as chemicals help snap 4-quarter losing streak

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Irving’s Exxon tops earnings estimate as chemicals help snap 4-quarter losing streak

Later this week, Exxon Mobil Corp. or ExxonMobil, the Irving, Texas-based American multinational oil ‘supermajor,’ had surpassed Wall St.’s quarterly earnings estimates for fiscal Q1, 2021, snapping out a four-quarter long losing streak as an upsurge in oil prices that had started off later last year alongside a stronger-than-anticipated sales growth on its high profit-margin chemical businesses helped the beleaguered oil and natgas mammoth report an operational profit over first quarter.

Apart from that, an upswing in ExxonMobil’s quarterly earnings had largely echoed earnings’ reports of a raft of its regional peers, all of which had sailed on the back of a higher crude oil prices amid expectation of a demand-surge following an acceleration in pandemic vaccination campaign in major G20 economies, while Exxon Mobil’s European peers had also reported earnings which had overwhelmingly topped pre-pandemic levels.

Nonetheless, despite a higher crude oil price alongside a better outlook on its chemical business, quarterly earnings’ results had reported that the American oil supermajor had been able to turn the tide on its favour following sweeping cost trimming measures, as a histrionic annual loss last year called for a much-required tightening up of belts alongside a higher cash flow to offload debts.

Exxon profits beat Wall St. estimates as chemical earnings hit five-year peak

On top of that, according to the Irving, Texas-based oil and natgas mogul’s quarterly earnings’ report for fiscal Q1, 2021 that ended on March 31, the company’s net income rose to $2.73 billion or 64 cents per share compared to a net loss of $610 million or 14 cents per share clocked on the same time a year earlier.

Meanwhile, referring to a deep cost-cutting measure that helped trim Exxon’s capital spending as many as $3.1 billion alongside a roughly 10-fold rise in chemical earnings on a year-on-year basis, the strongest level in half a decade, Exxon Mobil Chief Executive Darren Woods said in a post-earnings’ conference call with the reporters, “Thanks to our efforts over the last few years, we are a stronger company with an improving outlook.