Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

ExxonMobil profits up despite lower oil and gas output

ExxonMobil profits up despite lower oil and gas output/AFP

ExxonMobil profits up despite lower oil and gas output/AFP

NEW YORK, July 31- US oil giant ExxonMobil Thursday reported higher second quarter profits despite pumping less oil and gas than it did a year ago.

Exxon, the biggest US oil company and the second largest US company in terms of market capitalization after Apple, said earnings came in at $8.8 billion, up 28 percent from the year ago level.

Production of oil and gas declined 5.7 percent, but profitability in the exploration and production segment rose 25 percent to $7.9 billion. Exxon said “higher realizations” for its output added $580 million.

Lower oil and gas volumes is often seen as a red flag in the oil business. But Exxon has emphasized that it will not sacrifice profitability for higher output, meaning it will not produce oilfields unless they are highly profitable.

Exxon’s downstream earnings rose nearly 80 percent to $711 million, while chemicals earnings rose 11.2 percent to $841 million.

“ExxonMobil’s financial results were achieved through strong operational performance and portfolio management,” said chief executive Rex Tillerson.

“We continue to enhance shareholder value by funding capital projects and delivering robust shareholder returns through dividends and share purchases.”

Results translated into earnings per share of $2.05, 19 cents above analyst forecasts.

Revenues rose 4.7 percent to $111.65 billion, above the $108.38 billion analyst forecast.

Shares of the Dow component fell 1.4 percent to $101.85 in pre-market trade.

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...