Profitable Exxon emerges as global economy rebounds | Economic news

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By MICHELLE CHAPMAN, AP Business Writer

Exxon Mobil reversed losses suffered last year during the pandemic with a third quarter profit of $ 6.75 billion, with demand pushing the price of a barrel of crude to over $ 80 for the first time in years .

The oil and gas company earned $ 1.57 per share, or $ 1.58 if one-time items are removed. It exceeded Wall Street expectations by a dime, according to a survey by Zacks Investment Research.

A year earlier, it had lost $ 680 million, or 15 cents per share.

Exxon does not adjust its reported results based on one-off events such as asset sales.

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Stocks rose slightly before the market opened on Friday.

Revenue was $ 73.79 billion, also exceeding expectations.

Oil-equivalent production rose 4% to 3.7 million barrels per day.

Oil companies were under pressure during the pandemic to cut back on drilling after demand fell because so many people were staying at home. Prices have fallen and exploration and production budgets have been reduced. This resulted in less oil and gas in the market and in storage, which pushed up prices. But things have started to change as people get vaccinated, go back to their offices and start traveling.

The energy sector has far outpaced the broader market in 2021. Energy stocks on the S&P 500 are up more than 50%, compared to a gain of around 20% for the overall index.

Exxon has said it is considering investing in low-carbon business ventures. Its low-carbon investments are expected to be around $ 15 billion from 2022 to 2027. But the company, along with others in the sector, is increasingly criticized over climate change.

On Thursday, ExxonMobil CEO Darren Woods said his company “does not spread misinformation about climate change” as he and other heads of oil companies responded to allegations by Congress that the industry had concealed evidence of its dangers.

Woods was among senior officials from four major oil companies testifying as Congressional Democrats investigate what they describe as a decades-long industry-wide campaign to spread misinformation about the role of fossil fuels in global warming.

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