USA: Exxon Mobil Says Q2 Profit Down by 57 Pct

Exxon Mobil said on Thursday its earnings of $6,860 million 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.

Second quarter highlights:

• 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.
• Share purchases to reduce shares outstanding were $4 billion.
• Dividends per share of $0.63 increased 11% compared to the second quarter of 2012.
• As announced on April 27, 2013, production started from the Kearl oil sands project in Alberta, Canada. The initial phase is expected to produce 110,000 barrels per day, with the expansion project expected to double production capacity by late 2015.
• Rosneft and ExxonMobil announced the achievement of several milestones under their 2011 Strategic Cooperation Agreement, including the formation of joint ventures for the Kara Sea and Black Sea projects, and the establishment of foundations for joint ventures to explore seven other licenses in the Russian Arctic and to manage the joint West Siberia tight oil project. The companies have also agreed to move to the next planning phase for an LNG development in the Russian Far East.
• ExxonMobil recently announced expansions to increase premium base stocks production at the Baytown, Texas and Singapore refineries, with production expected to be available by early 2015. The projects will increase capacity by 30%, maintaining our position as one of the industry’s leading global suppliers of high-quality base stocks.
• ExxonMobil’s Singapore Chemical Plant began producing ethylene from the facility’s second world-scale steam cracker, more than doubling steam-cracking capacity at the site and significantly increasing specialties capacity. The new steam cracker improves feedstock flexibility and well positions the Singapore complex to serve growth markets in Asia Pacific.

ExxonMobil’s chairman Rex W. Tillerson commented:

“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.”

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