Exxon Mobil outperformed Q1 market expecatations

In 2020, due to covid-19, almost 1600 jobs were terminated to reduce the cost of production. For quarter one, the fiscal year 2021, Exxon Mobil reported earnings per share was $0.65, narrowly closed with analyst prediction i-e $0.64. The company earned $ 59.1B, which was surpassed the analyst's estimate, which is about $53.7B. Exxon's narrowly missing analyst expectations and upstream segment net income, whose reported value is $2.6B, lower than the predicted value of $2.7B.

Upstream segments :< /h3>

The upstream segment relates to shipping, extraction, wholesale operation, and oil exploration. The upstream segment put together almost the majority of the company's revenue, and this segment earns nearly 70 percent of the total. Exxon (XOM) is currently focusing on extracting natural gas and oil; besides, it tries to produce and extract crude oil and natural gas. The main business segment is the chemical segment; petrochemical raw material is obtained using natural gas and crude oil.

The petrochemical raw material is used to make clothing, vitamin capsules, medical equipment, tires, electronics, and many other products. Globally due to the severe impact of covid-19, the oil demand is increased, and upstream net income in Q1FY 2021 rose by 376.5%, while the net income in Q4FY 2020 was $536 million. CEO and Chairperson Darren Woods mentioned that the increased commodity price strongly impacted the company's first-quarter results.

The strategy of Carbon capture and storage :< /h3>

The company announces to start a low carbon solution business in the earlier first quarter of the year, the main focus of the business is to capture carbon and storage (CCS). This process relates to how the released carbon is stored underground. According to Exxon, technology is considered to be essential to reach net-zero carbons emissions. Several other initiatives are announced to low down carbon eFuels which are aimed to reduce emissions.

Upcoming declaration :< /h3>

Exxon announced to held elections among three new board members: Wan Zulkiflee, Michael Angelakis, and Jeffrey Ubben. Press release of Exxon’s earnings did not issue any revenue guidance. The company's following earning report (Q2FY2021) is expected to release on July 29, 2021.