Oil giants, ExxonMobil and Chevron corporations have announced 2017 earnings of $19.7 billion and $9.2 billion respectively.
In the announcements made at the weekend, Exxon said it’s fourth quarter (Q4) 2017 earnings was $8.4 billion, a not so much increase over the $7.8 billion earned in same period of 2016. This is just as Chevron Corporation reported earnings of $3.1 billion for Q4 2017, a significant increase over the $415 million recorded in 2016.
The US federal tax reform in Q4 2017 resulted in a non-cash earnings gain of $5.9 billion, due to revaluation of deferred income tax balances, Exxon’s results indicated.
The company’s chairman and chief executive officer, Darren Woods said “The impact of tax reform on our earnings reflects the magnitude of our historic investment in the U.S. and strengthens our commitment to further grow our business here.”
Non-cash asset impairments of $1.5 billion were recorded during the year, mainly relating to assets in the Upstream.
Woods added. “We’re planning to invest over $50 billion in the U.S. over the next five years to increase production of profitable volumes and enhance our integrated portfolio, which is supported by the improved business climate created by tax reform.”
According to Chevron’s result, full-year 2017 earnings were $9.2 billion compared with a loss of $497 million in 2016. Included in 2017 were non-cash provisional tax benefits of $2.02 billion related to US tax reform, gains on asset sales of $1.44 billion, and impairments and other non-cash charges of $840 million.
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