Exxon Mobil announced today, Friday, a drop in its profits by 56% in the second quarter, which fell short of Wall Street expectations, joining its peers in the energy sector who have been affected by a significant decline in energy prices and the lower margins on fuel. Profits of major global oil companies have nearly halved compared to their levels in 2022, when they benefited from soaring oil and gas prices due to the Russian invasion of Ukraine.
However, Exxon stated that excluding the record performance in the second quarter of last year, it recorded its strongest results for the second quarter in over a decade, supported by cost reductions and the sale of low-profit assets. The company intends to further cut costs after having reduced them by a total of $8.3 billion since 2019.
The company's quarterly net income was $7.88 billion, or $1.94 per share, compared to a record profit of $17.85 billion in the same quarter last year. According to Refinitiv data, Wall Street had anticipated earnings of $2.01 per share.
The company reported that profits from energy products totaled $2.3 billion, down $1.9 billion from the first quarter, but this was offset by an increase in profits from chemical products to $828 million from $371 million, thanks to lower feedstock costs.
Exxon's oil production stands at 3.7 million barrels of oil equivalent per day this year, in line with the company's annual target and little changed from the level a year ago. Capital expenditures and exploration spending reached $12.5 billion in the first half of 2023, which aligns with the company's full-year forecast of between $23 billion and $25 billion.
