28th Jul 2023 16:35
(Alliance News) - Exxon Mobil Corp on Friday focused on highlighting production improvements, after seeing both net income and revenue fall over the second quarter on lower natural gas prices and industry refining margins.
For the three months ended June 30, the Irving, Texas-based oil and gas company reported net income - including non-controlling interests - of USD8.15 billion, down 56% from USD18.57 billion a year prior.
Income before income taxes was USD11.66 billion, down 53% from USD24.93 billion, while net income attributable to ExxonMobil fell 56% to USD7.88 billion from USD17.85 billion.
Total revenue also declined over the second quarter, down 28% to USD82.91 billion from USD115.68 billion a year prior.
Reflecting on an unimpressive quarter, Exxon told investors that lower natural gas realisations and industry refining margins had adversely impacted earnings.
Upstream second-quarter earnings were USD4.6 billion, representing a USD1.9 billion decline from the first quarter. The main factors were lower natural gas prices, which declined 40%, and seasonally higher scheduled maintenance.
Looking ahead, Exxon said that capital and exploration expenditures of USD6.2 billion in the second quarter and USD12.5 billion for the first half were in line with its full-year guidance of USD23 billion to USD25 billion.
"The work we've been doing to improve our underlying profitability is reflected in our second-quarter results, which doubled from what we earned in a comparable industry commodity price environment just five years ago", said Chief Executive Officer Darren Woods.
He added: "Production is up 20% year-over-year in Guyana and the Permian, and we are playing a leading role in the industry's energy transition with an agreement to acquire Denbury and with three world-scale [carbon dioxide] offtake agreements. This reflects the significant opportunity to profitably grow our Low Carbon Solutions business by creating a compelling customer decarbonization proposition with the potential to reduce Gulf Coast industrial emissions by 100 million metric tons per year."
Exxon declared a third-quarter dividend of USD0.91 per share, payable on September 11.
Exxon Mobil shares were down 1.4% at USD103.93 each in New York pre-market on Friday late morning.
By Holly Beveridge, Alliance News reporter
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