Exxon Mobil CEO Darren Woods attributed the oil giant’s Street-beating earnings report to its “decision to lean into the business” while “most of our peers were leaning out of the industry.”
Speaking to CNBC on Friday, the CEO of Exxon Mobil (NYSE:XOM) explained that the company had invested in additional production over the last few years, while many of its competitors focused on returning excess cash to shareholders. Now that oil prices have climbed recently, the company is taking advantage of the added capacity.
“What we’re seeing today is that extra production that we invested in five years ago and since then, that we’re in a position to bring more product to market,” he said.
Early Friday, Exxon Mobil (XOM) announced a Q2 profit that breezed by expectations, as the company nearly quadrupled its bottom line from last year and brought its biggest-ever quarterly earnings figure of $17.85B. Revenue surged 71% to $115.7B.
In response to the earnings news, the company’s stock price climbed 4% in early trading to reach $96.61, reaching its highest mark in more than a month. Still, shares remain off a 52-week high of $105.57 set in the first half of June.
Commenting on the results, Woods said that many oil companies “chase the cycle” by increasing production when prices are high and cutting back when prices are low. He stressed that its strategy “to invest counter-cyclically” in the last few years is “paying its dividends now.”
Looking ahead, Woods reported that he expects continued “modest growth” in global energy demand, even amid concerns of a possible recession. He added that even without this expansion, the market remains “tight” because of the limited supplies available.
For more on XOM and the role of macro factors in its business, see why Seeking Alpha contributor Bohdan Kucheriavyi says the company “could profit from Russia’s demise.”