ExxonMobil Corporation reported Fourth-quarter (Q4) 2018 earnings of $6 billion compared with $8.4 billion in the prior-year’s last quarter.
Earnings excluding US tax reform and impairments were $6.4 billion compared with $3.7 billion in the prior-year quarter. The company’s estimated 2018 earnings was $20.8 billion compared with $19.7 billion a year earlier.
Similarly, Chevron Corporation also reported earnings of $3.7 billion for Q4 of 2018 compared with $3.1 billion in the same quarter in 2017, which included $2.02 billion in tax benefits related to US tax reform.
For ExxonMobil, earnings excluding US tax reform and asset impairments were $21 billion compared with $15.3 billion in 2017. Cash flow from operations and asset sales was $40.1 billion, including proceeds associated with asset sales of $4.1 billion.
Capital and exploration expenditures were $25.9 billion, including incremental spend to accelerate value capture. The company’s full-year cash flow from operating activities—$36 billion—is its highest since 2014.
Production for the quarter increased to 4.01 million boe/d, up 4percent from the 3.9 million boe/d reported in Q4 2017, driven by growth in the Permian basin where the company plans to triple total daily production by 2025.
Meanwhile, Chevron which hit record annual net oil-equivalent production in 2018, reported in Q4, an asset write-off totaling $270 million. Foreign currency effects also increased earnings in the 2018 fourth quarter by $268 million.
The company’s full-year 2018 earnings were $14.8 billion compared with $9.2 billion in 2017. Included in 2018 were impairments and other charges of $1.59 billion and a gain on an asset sale of $350 million. Foreign currency effects increased earnings in 2018 by $611 million.
Michael K. Wirth, Chairman and Chief Executive Officer of the company said its net oil-equivalent production increased more than 7percent in 2018 to a record 2.93 million b/d. The company expects 2019 production to continue to rise by 4-7percent, excluding the impact of asset sales, he said.
The company added some 1.46 billion bbl of net oil-equivalent proved reserves in 2018. These additions equate to about 136percent of net oil-equivalent production for the year.