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A profitable Exxon is created when the global economy recovers

Exxon Mobil reversed the losses it suffered last year during the pandemic with a profit of $ 6.75 billion in the third quarter as demand pushed the price of a barrel of crude oil above US $ 80 for the first time in years Dollar pushes.

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

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

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

Shares rose slightly before the market opened on Friday.

Sales were $ 73.79 billion, also exceeding expectations.

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

Oil companies were under pressure to cut back drilling during the pandemic after demand plummeted because so many people were staying at home. Prices fell and exploration and production budgets were cut. This resulted in less oil and gas in the market and in storage, which in turn increased prices. But things have changed when people get vaccinated and come back to the offices and start traveling.

The energy sector has left the broader market far behind in 2021. The S&P 500 energy stocks are up more than 50% compared to an increase in the overall index of around 20%.

Exxon said it is considering investing in lower-carbon companies. Its low-carbon investments are projected to be around $ 15 billion from 2022 to 2027. But the company, along with others in the industry, is facing increasing criticism of climate change.

Darren Woods, ExxonMobil CEO, said Thursday that his company “will not spread disinformation about climate change” as he and other oil company leaders countered congressional allegations that the industry was hiding evidence of the dangers of climate change.

Woods was among the top officials at four major oil companies who testified when Democrats in Congress are investigating a decades-long, industry-wide campaign to spread disinformation about the role of fossil fuels in global warming.

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