Exxon Mobil (XOM) released fourth-quarter and full-year 2022 financial results on Jan. 31, 2023.
The energy giant achieved its highest-ever annual profit in 2022, spurred by soaring crude prices.
CEO Darren Woods highlighted recent “counter-cyclical investments” in fossil fuels as a component of Exxon Mobil’s success.
Exxon Mobil (XOM) posted a record profit in 2022 as soaring crude prices helped the energy giant roar back from the industry slowdown caused by the COVID-19 pandemic.
The company reported full-year earnings of $55.7 billion, smashing its all-time high of $45.2 billion set in 2008. Revenue rose 44.5% to $413.7 billion. In the fourth quarter, it had earnings per share (EPS) of $3.40 and sales of $94.5 billion.
Profit was boosted by a surge in oil and gas prices following Russia’s invasion of Ukraine, which sent the cost of gasoline up to a nationwide average of $5.01 per gallon in June, the highest ever.
CEO Darren Woods indicated that, while Exxon Mobil’s results clearly benefited from a favorable market, the “counter-cyclical investments” the company made before and during the COVID-19 pandemic provided “the energy and products people needed as economies began recovering and supplies became tight.”
Continued to Invest
The CEO said, “we leaned in when others leaned out,” and as competitors moved away from fossil fuel investments, Exxon Mobil gained a business advantage by extracting and selling it.
Woods added that the world will still need oil and natural gas as long as there continues to be a shortage of competitive, lower-emission fuel alternatives available.
Exxon Mobil shares added 2% on Jan. 23, and they’re up 54% over the past year.