Exxon Mobil has announced estimated earnings from its first quarter of $2.7 billion, indicating that it is back in the black after a hard year for the industry, which saw it lose $610 million. Production was also up by 3%, at 3.8 million barrels per day of oil equivalent.

The profits come despite the February’s severe winter weather in Texas having impacted its operations. It estimates that lower sales volumes and production disruptions cost the oil major almost $600 million in earnings in the quarter, although it says that all the affected facilities are now fully operational. It also said that its lubricants business, which makes products like grease and spindle oil, performed strongly due to enhanced margins and lower costs.

Darren Woods, the Chairman and CEO of Exxon Mobil, said that the strong results from the first quarter:

“Reflect the benefits of higher commodity prices and our focus on structural cost reductions, while prioritizing investments in assets with a low cost of supply. Cash flow from operating activities during the quarter fully covered the dividend and capital investments, and we strengthened the balance sheet by reducing debt.”

Woods added that the launch of its new business, called ExxonMobil Low Carbon Solutions, showed that the company was progressing in its energy transition strategy. This seeks to innovate in the use of industrial-scale carbon capture and storage (CCS) technologies in some 20 possible applications, including for multiple industries around the Houston Ship Channel that are usually challenging to decarbonise with other green technologies.

The CEO said the company is seeing increased support for CCS as a crucial technology for achieving the goal of net-zero emissions.