One of the world’s largest publicly traded energy providers and chemical manufacturers, ExxonMobil Corporation said it has generated $48 billion of cash flow from operating activities in 2021.
According to ExxonMobil, this is the highest level since 2012, more than covering capital investments, debt reduction and dividends.
In its recently released Q4 FY2021 Earnings Report, the company revealed that structural costs were reduced by an additional $1.9 billion, increasing total savings to nearly $5 billion.
ExxonMobil noted that plans are ongoing to achieve the net zero Scope 1 and 2 greenhouse gas emissions for operated assets by 2050, with plans to achieve net zero in the Permian Basin by 2030.
The company expects to meet its 2025 emission-reduction plans four years ahead of schedule. This includes a 15-20% reduction in greenhouse gas intensity of upstream operations; a 40-50% reduction in methane intensity; and a 35-45% reduction in flaring intensity across the corporation versus 2016.
“Our effective pandemic response, focused investments during the down-cycle, and structural cost savings positioned us to realize the full benefits of the market recovery in 2021.
“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”, ExxonMobil’s Chairman and Chief Executive Officer, Darren Woods said.
Upstream, ExxonMobil revealed that realizations for crude oil increased by 8% from the third quarter while natural gas realizations increased by 63% from the prior quarter.
During the fourth quarter, the company’s board of directors approved the company’s corporate plan for 2022, with capital spending anticipated to be in the range of $21 billion to $24 billion.
Beginning in the first quarter of 2022, the company initiated share repurchases associated with the previously announced buyback program of up to $10 billion over the next 12 to 24 months.
Meanwhile, effective from April 1, 2022, Exxon will be organized along three business lines: its upstream oil and gas production unit, the combined downstream refining and chemicals business, and its latest energy transition business, called Low Carbon Solutions.
