ExxonMobil reported Friday second-quarter earnings plunged by more than 50% following the big drop in crude oil prices.
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“Our quarterly results reflect the disparate impacts of the current commodity price environment, but also demonstrate the strength of our sound operations, superior project execution capabilities, as well as continued discipline in capital and expense management,” said ExxonMobil Chairman and CEO Rex Willerson in a statement.
Upstream earnings fell $5.9 billion to $2 billion, with a decline in upstream liquids cutting the segment’s earnings by $4.5 billion.
The oil giant recorded 2.6 million barrels per day in worldwide oil equivalent production, an increase from the 2.55 million barrels a day in last year’s second quarter.
Chemical: This unit contributed approximately $1.2 billion to the company’s profits, up $405 million from the year-earlier quarter.
The company’s quarterly revenue moved down 30.3% year over year to $40,357 million.
ExxonMobil’s capital expenditures (capex) fell sharply from a year ago, down 16% to $8.26 billion.
Exxon reduced spending on major projects like floating crude platforms and gas export terminals by 20 percent to $6.746 billion during the quarter. The eliminated positions are across 24 business groups in its corporate center and will result in cost reductions of about $1 billion. It reflected in its share price on the NYSE, where it fell around 4.5% in early trade. Liquid production increased 11.9% year over year to 2.291 million barrels per day.
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Earnings in downstream more than doubled to 1.5 billion, while profits in chemicals rose 48.1 percent to 1.2 billion. Chevron sold 535,000 barrels of its branded gasoline a day in the United States, up 2 percent. The U.S. upstream operations swung to a loss of $1.04 billion compared to last year’s income of $1.05 billion. Included in the latest report were impairments totaling $1.96 billion and other charges of $670 million relating to project suspensions and adverse tax effects. Only Royal Dutch Shell plc RDS.A was able to cope better with the free fall in commodity prices and reported higher-than-expected profits yesterday. The upstream unit posted a $2.22 billion loss, versus year-ago earnings of $5.264 billion.
