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Exxon Mobil is taking significant steps in addition to its impressive Q4 earnings. The company has revealed that it is relocating its headquarters from Irving to Houston.
Natural gas company Exxon Mobil Corp (NYSE: XOM) reported its largest profit in seven years while announcing its Q4 earnings. The oil company saw a profit of $8.87 billion in the quarter, benefiting from high energy prices. According to the announcement, Exxon Mobil’s revenue grew over 80% year-on-year during Q4 as oil and gas prices recovered. The oil and gas prices are gradually rebounding, with crude selling at its highest price. On Friday, the international benchmark Brent crude was more than $90 for the first time since October 2014.
With its more robust financial position, Exxon now intends to begin buying back stock from this current quarter. In addition, the natural gas company had better than expected earnings per share for the quarter. Exxon earned $2.05 per share excluding items, crossing analyst expectations of $1.93. Also, the company earned 3 cents per share excluding items in Q4 of the previous year. As for Q3 2021, Exxon earned $1.58 per share on an adjusted basis on sales of $73.79 billion.
Furthermore, Exxon recorded $48 billion of cash flow from operating activities- the highest since 2012. The company also reduced its debt by $20 billion in 2021, including a $9 billion payment during the fourth quarter. The oil company’s debt has now returned to pre-pandemic levels.
Exxon Mobil’s Reports Impressive Q4 Results as Oil and Gas Prices Rebound
Exxon Mobil is taking significant steps in addition to its impressive Q4 earnings. The company has revealed that it is relocating its headquarters from Irving to Houston. Also, it will be restructuring its business into three divisions beginning from the 1st of April. According to the company, streamlining its operations will result in enhanced effectiveness while costs are redacted. The three divisions are Upstream, production solutions, and low-carbon solutions.
CEO Darren Woods said in a statement:
“Our new streamlined business structure is another example of the actions we are taking to further strengthen our competitive advantages and grow shareholder value. We’ve made great progress in 2021 and our forward plans position us to lead in cash flow and earnings growth, operating performance, and the energy transition.”
Exxon Mobil stock increased more than 6% on the 1st of February at trade at its highest level since April 2019. At the time of writing. The oil company is down 0.21% to $80.66. XOM has been consistently pulling in gains over the past year, adding 77.14% in the last twelve months. The company has also advanced more than 32% since the year started and surged further by 24,70% in the last three months. Exxon stock has also pumped 22.60% over the past month and another 7.87% in the last five days.
The oil giant’s largest business, oil and gas production, reached its highest in two years at $6.1 billion operating profit.