ExxonMobil Corp. posted second-quarter earnings of $3.4 billion, double the $1.7 billion recorded in second-quarter 2016, as oil and gas realizations increased and refining margins improved. The supermajor’s first-half earnings were $7.4 billion, up from $3.5 billion in 2016.
The firm reported second-quarter cash flow from operations and asset sales of $7.1 billion, including proceeds associated with asset sales of $154 million.
Second-quarter earnings in the firm’s global upstream business were $1.2 billion, up $890 million from second-quarter 2016, due to higher liquids and gas realizations, ExxonMobil said.
Production during the second quarter of 3.9 million boe/d was down 1% from second-quarter 2016. Liquids production totaled 2.3 million b/d, down 61,000 b/d year-over-year as field decline and lower entitlements were partly offset by increased project volumes and work programs.
Second-quarter natural gas production was 9.9 bcfd, up 158 MMcfd from second-quarter 2016 as project ramp-ups, primarily in Australia, were partly offset by field decline and lower demand.
The firm’s US upstream business took a second-quarter loss of $183 million compared with a loss of $514 million in second-quarter 2016. Non-US upstream earnings were $1.4 billion, up $559 million from the prior year period.
ExxonMobil’s second-quarter downstream earnings were $1.4 billion, up $560 million from second-quarter 2016. Higher margins increased earnings by $220 million, while favorable volume and mix effects increased earnings by $90 million, the firm said. All other items increased earnings by $250 million, including asset management gains, favorable foreign exchange impacts, and lower turnaround expenses.
Earnings from the firm’s US downstream business were $347 million, down $65 million from second-quarter 2016. Non-US downstream earnings of $1 billion were $625 million higher year-over-year.
Chemical earnings of $985 million for the firm were $232 million lower than second-quarter 2016. Weaker margins decreased earnings by $40 million, volume and mix effects decreased earnings by $50 million, and all other items decreased earnings by $140 million primarily due to higher turnaround expenses.
Earnings from ExxonMobil’s US chemical business were $481 million, down $28 million from second-quarter 2016. Non-US chemical earnings of $504 million were $204 million lower year-over-year.