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Higher oil prices boost ExxonMobil profits

Higher oil prices boost ExxonMobil profits

File photo of ExxonMobil.

NEW YORK: ExxonMobil reported better-than-expected quarterly profits Friday (Jul 30) on higher commodity prices, pointing to rising energy demand amid the economic recovery from COVID-19

The oil and gas giant reported profits of US$4.7 billion in the second quarter, compared with a loss of US$1.1 billion in the year-ago period when pandemic restrictions devastated energy demand.

"Positive momentum continued during the second quarter across all of our businesses as the global economic recovery increased demand for our product," said Chief Executive Darren Woods.

Revenues more than doubled to US$67.7 billion.

ExxonMobil scored higher profits across its exploration and production business, with significantly higher oil prices more than offsetting lower production. Chemical profits also surged during the period on strong demand and pricing.

But the company pointed to "ongoing impacts from market oversupply" as a drag on its downstream business, which lost money during the quarter.

ExxonMobil said it expects higher planned spending in the second half of the year on key projects, but signaled it does not expect to shift into a more aggressive posture on investment.

Full-year spending will be on the "lower end" of its projected US$16 billion to US$19 billion for all of 2021, the company said in its earnings release.

Shares rose 1.0 per cent in pre-market trading to $59.50.

Source: AFP


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