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BIG SPENDING LIKELY IN H2

ExxonMobil swings to $4.7bn Q2 profit on higher oil prices

TEXAS, July 31, 2021

Global energy giant Exxon Mobil Corporation has announced an estimated earnings of $4.7 billion ($1.10 per share) for the second-quarter, assuming dilution, compared with a loss of $1.1 billion for the same period last year.
 
Second-quarter capital and exploration expenditures were $3.8 billion, bringing the first half of 2021 to $6.9 billion, which is consistent with planned lower activity in the first half of the year. 
 
The company anticipates higher second-half planned spending on key projects, including Guyana, Brazil, Permian and in Chemical, with full-year spending towards the lower end of the guidance range of $16 billion to $19 billion, said the statement from Exxon Mobil. 
 
Earnings increased $5.8 billion over the second quarter of 2020, driven by oil and natural gas demand and best-ever quarterly chemical and lubricants contributions, it stated.
 
The average realizations for crude oil increased 13% from the first quarter. Natural gas realizations increased 1% from the prior quarter.
 
Liquid volumes decreased 3% from the first quarter, driven by increased planned maintenance activity. Natural gas volumes decreased 10%, driven by lower seasonal demand.
 
During the quarter, production volumes in the Permian averaged 400,000 oil-equivalent barrels per day, an increase of 34% from the second quarter of 2020. The focus remains on continuing to grow positive free cash flow by lowering overall development costs and increasing recovery through efficiency gains and technology applications.
 
According to Exxon Mobil, the cash flow from operating activities of $9.7 billion funded the dividend, capital investments and debt reduction.
 
Low carbon solutions business advanced multiple CCS opportunities and low-emission fuels initiatives, it stated.
 
Portfolio improvement activities included signing an agreement for the $1.15 billion fourth-quarter sale of the Santoprene chemical business, affirmative funding decision for the Bacalhau development in Brazil, and additional exploration success in Guyana.
 
Oil-equivalent production in the second quarter was 3.6 million barrels per day, down 2% from the second quarter of 2020, driven by increased maintenance activity. 
 
Excluding entitlement effects, divestments, and government mandates, oil-equivalent production increased 3%, including growth in the Permian and Guyana. 
 
On the impressive results, Chairman and CEO Darren Woods said: "Positive momentum continued during the second quarter across all of our businesses as the global economic recovery increased demand for our products."
 
"We’re realizing significant benefits from an improved cost structure, solid operating performance and low-cost-of-supply investments that, together, are generating attractive returns and strong cash flow to fund our capital program, pay the dividend and reduce debt, he stated. 
 
"This was particularly true for our Chemical business that delivered their best quarter in company history. In our efforts to support society's energy transition goals, our Low Carbon Solutions business made progress in identifying new opportunities and in establishing new partnerships in carbon capture and storage, hydrogen and low-emission fuels," he added.-TradeArabia News Service



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