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.

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 GlobalData

However, 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.”