ExxonMobil Records 2Q Profit, Production Drop

Exxon Mobil today reported its profit for the second quarter 2013 was $6,860 million. The profit decreased $9,050 million or 57% from the second quarter of 2012 reflecting the absence of a prior year net gain of $7.5 billion associated with divestments and tax-related items.

Earnings per share (assuming dilution) were $1.55, a decrease of 55%. Excluding prior year divestments and tax-related items, earnings per share were down 14%.

Capital and exploration expenditures were $10.2 billion, up 10% from the second quarter of 2012, in line with anticipated spending plans.

Oil-equivalent production decreased 1.9% from the second quarter of 2012. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was essentially flat.

Cash flow from operations and asset sales was $8.0 billion, which includes an unfavorable working capital impact of about $5 billion primarily related to the timing of tax payments and planned operational events. Proceeds associated with asset sales were $0.3 billion.

The company’s chairman Rex W. Tillerson said:

“ExxonMobil’s second quarter results reflect continued strong operational performance and investments to meet growing demand for oil, natural gas and chemical products in the years ahead.

“Second quarter earnings were $6.9 billion, down 57% from the second quarter of 2012. Excluding the prior year net gain of $7.5 billion associated with divestments and tax-related items, earnings were down 19%. Weaker refining margins and volumes associated with planned refinery turnaround and maintenance activities negatively impacted Downstream earnings.

“Capital and exploration expenditures were $10.2 billion in the second quarter and $22 billion for the first six months of 2013, in line with anticipated spending plans.

“The Corporation distributed $6.8 billion to shareholders in the second quarter through dividends and share purchases to reduce shares outstanding.”

Upstream earnings were $6,305 million in the second quarter of 2013, down $2,053 million from the second quarter of 2012. Higher natural gas realizations, partially offset by lower liquids realizations, increased earnings by $90 million, while lower volumes reduced earnings by $70 million. All other items reduced earnings by about $2.1 billion, primarily reflecting the absence of a prior year gain in Angola and higher operating expenses, including reimbursement of past exploratory costs to Rosneft for the Black Sea and Kara Sea Joint Ventures.

On an oil-equivalent basis, production decreased 1.9% from the second quarter of 2012. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was essentially flat.