US-based energy major Exxon Mobil has reported a net income of $7.88bn in the second quarter of 2023, a nearly 56% decline in comparison to the same quarter last year.
The slump in earnings was attributed to lower natural gas realisations and industry refining margins.
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Upstream earnings during the period under review fell by around 60% to $4.57bn from $11.37bn in Q2 2022 due to the fall in natural gas prices.
Lower petroleum and natural gas realisations were somewhat offset by a 20% increase in production in Guyana and the Permian compared with the same period last year.
Energy products Q2 earnings totalled $2.3bn, down $2.96bn or 56% in comparison with the year-ago quarter.
Theearnings from chemical products touched $828m this quarter as against $1.07bn in the same period of last year.
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By GlobalDataHowever, specialty products’ earnings increased from $417m in Q2 2022 to $671m in Q2 2023.
Capital and exploration expenses totalled $6.2bn in the second quarter, in line with the company’s full-year projection of $23bn to $25bn.
Earnings during the first six months fell over 17% to $19.31bn from $23.33bn in the first half of 2022.
Exxon Mobil chairman and CEO Darren Woods said: “Earnings totalled more than $19bn during the first half of the year, and we are on track to structurally reduce costs by $9bn at year-end compared to 2019.
“Production is up 20% year-over-year in Guyana and the Permian, and we are playing a leading role in the industry’s energy transition with an agreement to acquire Denbury and with three world-scale CO₂ offtake agreements.
“This reflects the significant opportunity to profitably grow our Low Carbon Solutions business by creating a compelling customer decarbonization proposition with the potential to reduce Gulf Coast industrial emissions by 100 million metric tons per year.”
