Exxon Mobil Corporation has announced estimated 2Q15 earnings of US$4.2 billion, or US$1 per diluted share, compared with US$8.8 billion in the same period a year earlier. Higher Downstream and Chemical earnings during the quarter were more than offset by the impact of weaker Upstream realisations and lower asset management gains.
“We are delivering on our investment and operating commitments across ExxonMobil’s integrated portfolio,” said Rex W. Tillerson, Chairman and CEO. “Our quarterly results reflect the disparate impacts of the current commodity price environment, but also demonstrate the strength of our sound operations, superior project execution capabilities, as well as continued discipline in capital and expense management.”
Downstream and Chemical segment earnings increased significantly from 2Q14, driven by higher margins, continued strong demand, and the quality of the company’s product and asset mix.
ExxonMobil produced 4 million oil equivalent bpd, an increase of 139 000 bpd, or 3.6%. Liquids volumes of 2.3 million bpd increased 11.9%, benefiting from new developments in Angola, Canada, Indonesia and the US.
During the quarter, the corporation distributed US$4.1 billion to shareholders in the form of dividends and share purchases to reduce shares outstanding.
- Earnings of US$4.2 billion decreased US$4.6 billion or 52% from 2Q14.
- Earnings per share, assuming dilution, were US$1, a decrease of 51%.
- Capital and exploration expenditures were US$8.3 billion, down 16% from 2Q14.
- Oil equivalent production increased 3.6% from 2Q14, with liquids up 11.9% and natural gas down 5.8%.
- Cash flow from operations and asset sales was US$9.4 billion, including proceeds associated with asset sales of US$629 million.
- The corporation distributed US$4.1 billion to shareholders in 2Q15, including US$1 billion in share purchases to reduce shares outstanding.
- Dividends per share of US$0.73 increased 5.8% compared with 2Q14.
- A significant oil discovery was made in Guyana on the 6.6 million acre Stabroek Block, which is located 120 miles offshore. The well was safely drilled to 17 825 ft in 5719 ft of water and encountered 295 ft of high quality oil bearing sandstone reservoirs.
- Production at the company’s Kearl oil sands expansion project in Alberta, Canada, started ahead of schedule, doubling gross capacity to 220 000 bpd of bitumen.
- Bitumen production began on schedule at the Cold Lake Nabiye project expansion in northeastern Alberta, Canada. The expansion is producing about 20 000 bpd and volumes are expected to reach peak daily production of 40 000 bbls later this year.
- Earnings were US$9.1 billion, down US$8.8 billion or 49% from 2014.
- Earnings per share, assuming dilution, decreased 48% to US$2.17.
- Capital and exploration expenditures were US$16 billion, down 12% from 2014.
- Oil equivalent production increased 3% from 2014, with liquids up 8.9% and natural gas down 3.6%.
- Cash flow from operations and asset sales was US$17.9 billion, including proceeds associated with asset sales of US$1.1 billion.
- The corporation distributed US$8 billion to shareholders in 1H15 through dividends and share purchases to reduce shares outstanding.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.hydrocarbonengineering.com/refining/03082015/exxon-mobil-sees-earnings-of-us42-billion-in-2q15-1216/