ExxonMobil plans further cost cuts to boost profit

ExxonMobil aims to slash costs further in order to double its earnings potential by 2027 and drive shareholder returns.

The biggest US producer plans to achieve structural savings of $9bn a year by 2023 compared to 2019, an increase of $3bn from an earlier goal, according to an update ahead of its annual investor day.

"We are focused on leading the industry in safety, reliability, environmental performance, earnings and cash flow growth — and ultimately shareholder returns," said chief executive Darren Woods.

The company targets a doubling of earnings and cash flow potential by 2027 compared with 2019 levels. It also aims to reduce breakeven costs by around $10/bl, boost returns on capital employed and "sustainably grow" shareholder returns.

Yesterday, US peer Chevron doubled its share buyback program to $5bn-$10bn from a previous range of $3bn-$5bn.

ExxonMobil is investing in what it called "low-cost-of-supply" assets including Guyana and the Permian Basin.

Annual capital spending was pegged at $21bn-$24bn in 2022 and $20bn-$25bn through 2027.

ExxonMobil also reiterated plans to spend more than $15bn over the next six years on curbing its carbon footprint, including investments in low-emission projects.

By Stephen Cunningham