ExxonMobil Reports $4.7 billion Earnings In Q2 As Chemical Division Posts Best-Ever Quarter
Energy sector giant ExxonMobil released earnings estimates of $4.7 billion or $1.10 per share in its second-quarter earnings report, compared to a loss of $1.1 billion in the second quarter of 2020.
Oil and natural gas are doing well in the markets as demand and prices rise. This, coupled with the best-ever quarterly contributions from chemicals and lubricants, drove the company’s profits to grow by a staggering $5.8 billion in the second quarter of 2020.
Capital and exploration expenses were $3.8 billion in the second quarter, bringing the first half of 2021 to $6.9 billion, in line with planned lower activity for the first half.
As a result, both planned second half and full-year spending will be closer to the bottom of the company’s $16 billion to $19 billion target range.
The production of oil equivalents decreased by 2% compared to the second quarter of 2020, due to an increase in maintenance activities. Including production in Perm and Guyana, oil-equivalent production increased by 3% when rights securities, divestments, and mandates are excluded.
Based on reliable operations, higher margins, and cost discipline, the company posted its best-ever quarterly profit of $2.3 billion.
As a result of strong demand and regional supply constraints, industry margins improved in the third quarter. North America’s regional advantage in ethane supply increased.
The average realization for crude oil increased by 13% compared to the first quarter. Realizations of natural gas increased by 1% compared to the previous quarter.
Higher scheduled maintenance resulted in a decrease in fluid volumes. Due to lower seasonal demand, the volume of natural gas decreased by 10%.
As a result of market oversupply, fuel margins in the sector improved in the second quarter but were below historical averages. A lower operating cost base and improved margins supported Lubricants’ strong performance.
Despite a winter storm in Texas in the first quarter, refinery throughput rose by 3%. Refinery operations continued to be managed in line with fuel demand and chemical production requirements.
The company has signed a Memorandum of Understanding relating to a carbon capture and storage (CCS) project in Scotland and the development of carbon infrastructure in France. By 2030, approximately 5 to 6 million tonnes of CO2 per year are expected to be captured and stored by the Acorn CCS project in Scotland. By 2030, this partnership in France aims to develop CCS technology with the aim of reducing CO2 emissions by up to 3 million tons.