News Column

Exxon Mobil Profit Rises Despite Fall In Output

July 31, 2014

IRVING (Alliance News) - Exxon Mobil Corp (XOM) Thursday reported a 28% jump in second-quarter profit, aided by asset sales as well as upstream and downstream margins, even as production slipped.

Results reflect strong operational performance and portfolio management, said Exxon Mobil Chief Executive Rex Tillerson. "We continue to enhance shareholder value by funding capital projects and delivering robust shareholder returns..."

Exxon's production performance has somewhat concerned investors. Its oil-equivalent production for the quarter slid 5.7% from last year to 3.84 million barrels a day. There was some growth in the US, but largely offset by declines internationally.

Results for the quarter included gains of USD1.2 billion, mainly from the sale of a power generating unit in Hong Kong.

Irving, Texas-based Exxon Mobil posted quarterly net earnings of USD8.8 billion or USD2.05 per share, compared with USD6.9 billion or USD1.55 per share a year ago.

On average, 19 analysts polled by Thomson Reuters expected earnings of USD1.86 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues and other income for the second quarter climbed to USD111.7 billion from USD106.7 billion in the prior year ago. Four analysts had a consensus revenue estimate of USD108.4 billion for the quarter.

US liquids production climbed to 458,000 barrels per day (b/d) from 419,000 b/d a year ago. Production in Canada and South America increased to 282,000 b/d from 264,000 b/d.

But production in Asia dropped to 597,000 b/d from 778,000 b/d a year ago, and Europe slid to 178,000 b/d from 197,000 b/d.

Total gas production for the quarter fell to 10.75 millions of cubic feet daily (mcfd) from 11.35 mcfd a year ago, on declines across most regions.

US upstream earnings were USD1.19 billion, up USD97 million from last year; while non-US upstream earnings were up by about USD1.48 billion at USD6.69 billion.

Its global downstream earnings were USD711 million, up by USD315 million from last year.

As for its key projects, Exxon Mobil during the quarter said it shipped its first cargo of liquefied natural gas from its Papua New Guinea project.

In Russia's Far East, Exxon installed 42,000-ton topsides on the Berkut drilling rig in the Okhotsk Sea. The rig is touted to be the company's offshore production platform.

It remains to be seen how Exxon grapples with Western sanctions against Russia, where the company has more exposure compared with other US companies.

Last month, Exxon started construction of a multi-billion dollar ethane cracker at its Baytown, Texas, complex.

XOM is trading at USD100.84, down USD2.41 or 2.33%, on a volume of 5 million shares on the NYSE.

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Source: Alliance News

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