2023-07-29 08:16:00
Earnings missed Wall Street expectations
Houston – Archyde.com
Posted on: July 29, 2023: 12:16 PM GST Last updated: July 29, 2023: 01:29 PM GST
Exxon Mobil announced a 56% fall in profits in the second quarter, which was below Wall Street expectations, joining its peers in the energy sector that have been hit by the sharp decline in energy prices and lower fuel margins.
The profits of the major international oil companies fell by almost half compared to their levels in 2022, when they benefited from the rise in oil and gas prices due to the Russian invasion of Ukraine.
But Exxon said that, excluding record performance in the second quarter of last year, it recorded its strongest second-quarter results in more than a decade, supported by cost cutting and selling low-profit assets.
The company intends to cut costs further, having reduced them by a total of $8.3 billion since 2019.
The company’s quarterly net income amounted to $7.88 billion, or $1.94 per share, compared to a record profit of $17.85 billion in the same period last year. According to Refinitiv data, Wall Street had expected earnings of $2.01 per share.
The company said profit from energy products was $2.3 billion, down $1.9 billion from the first quarter, but that was offset by a rise in chemical products to $828 million from $371 million, thanks to lower feedstock costs.
Exxon’s oil production is 3.7 million barrels of oil equivalent per day during the current year, which is in line with the company’s annual target and unchanged from its level a year ago.
Capital spending and exploration spending were $12.5 billion in the first half of 2023, which is in line with the company’s full-year forecast of $23 billion to $25 billion.
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