FILE PHOTO: Darren Woods, Chairman & CEO of Exxon Mobil Corporation, attends a news conference at the New York Stock Exchange (NYSE) in New York, U.S., March 1, 2017. REUTERS/Brendan McDermid/File Photo
January 31, 2022
By Sabrina Valle
HOUSTON (Reuters) -Exxon Mobil Corp on Monday disclosed a sweeping restructuring of its global operations that will combine its refining and chemicals businesses into one, and put its energy transition business on the same footing as its other operations.
The broad restructuring marks its latest cost-cutting effort after activist investors seeking to boost returns and address the energy transition won three seats last spring on its board.
Effective April 1, Exxon will be organized along three business lines: its upstream oil and gas production unit, the combined downstream refining and chemicals business, and its latest energy transition business, called Low Carbon Solutions, the company said in a filing.
“Aligning our businesses along market-focused value chains and centralizing service delivery, provides the flexibility to ensure our most capable resources are applied to the highest corporate priorities and positions us to deliver greater shareholder returns,” Chief Executive Officer Darren Woods said.
The restructuring will not impact fourth quarter financial results, which the top U.S. producer reports on Tuesday. Past cost-cutting moves and higher oil prices are expected to deliver a quarterly per share profit of $1.93, up from an adjusted profit of three cents a share a year-ago.
The restructuring will combine its technology operations, some of which had been assigned under the individual units. The new, single technology organization will be called ExxonMobil Technology and Engineering, Exxon said.
Exxon also will relocate its corporate headquarters from Irving, Texas, to its campus north of Houston. That move is expected to be completed in mid 2023.
(Reporting by Sabrina ValleEditing by Marguerita Choy)
Source: One America News Network
