ExxonMobil’s fourth-quarter revenue and profit fell as oil prices fell and the energy giant was weighed down by a huge impairment charge related to regulatory issues in California. Still, the company posted healthy adjusted profits, and it raised its quarterly dividend.
Shares were up 2% before trading opened on Friday.
Revenue for the three months ended Dec. 31 fell to $84.34 billion from $95.43 billion, below the $91.81 billion expected by analysts surveyed by Zacks Investment Research.
ExxonMobil earned $7.63 billion, or $1.91 per share, in the quarter, compared with $12.75 billion, or $2.25 per share, in the same period last year.
The quarter included $2.3 billion in impairment charges, of which $2.0 billion related to regulatory hurdles in California that prevented production and distribution assets from returning to normal operations.
Excluding expenses and other items, earnings per share were $2.48.
Analysts expected earnings of $2.21 per share. Exxon Mobil does not adjust its reported performance based on one-time events such as asset sales.
The Spring, Texas-based company raised its quarterly dividend 4% to 95 cents per share.
ExxonMobil went on an acquisition spree last year as oil prices soared.
In July, the company said it would spend $4.9 billion to acquire Denbury Resources, an oil and gas producer that has entered the carbon capture and storage business and will benefit from Changes in U.S. climate policy.
In October, ExxonMobil announced it would acquire the shale oil operator, making it the first of many deals Pioneer Natural Resources spends $60 billionTwo months later, the Federal Trade Commission, which enforces federal antitrust laws, asked Additional information Pioneer disclosed the request in a filing on Tuesday.
Increased cash levels among all large producers have fueled massive consolidation in the energy industry. Chevron Said it would acquire Hess Corp. for $53 billion.
Oil markets are getting nervous Saudi Arabia and Russia oil production cutswar between Israel and Hamas remains possible take risks triggering wider conflicts in the Middle East. While attacks on Israel would not disrupt global oil supplies, according to the U.S. Energy Information Administration’s analysis, “they increase the likelihood of oil supply disruptions and higher oil prices.”