ExxonMobil Q2 profit surges to $4.7bn on higher oil prices
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ExxonMobil Q2 profit surges to $4.7bn on higher oil prices

02 Aug 2021 (Last Updated August 2nd, 2021 12:20)

The company used higher cash flow from operating activities to reduce debt and aims for $6bn cost savings through 2023.

ExxonMobil Q2 profit surges to $4.7bn on higher oil prices
Exxon Mobil reported $1bn in cost savings in the first half of 2021 Credit: Grant Durr on Unsplash.

Exxon Mobil has reported earnings of $4.7bn for Q2 2021 compared with a $1.1bn loss a year ago, benefitting from increased oil and natural gas demand.

Total revenues for the quarter ended 30 June 2021 surged to $67.74bn from $32.6bn in the previous year.

The firm said that the profit, assuming dilution, was also due to ‘best-ever quarterly chemical and lubricants contributions’.

The US-based energy firm’s capital and exploration expenditures stood at $3.8bn for the quarter against $5.3bn in Q2 2020.

The decrease in expenditures is consistent with the firm’s scheduled reduced activity in H1 2021.

However, the energy giant noted that it plans to increase spending in the second half of 2021 on key projects in Guyana, Brazil and the Permian, as well as in chemical projects.

The firm’s 2021 capital spending is expected to be at the lower end of the prior range of $16bn-$19bn.

Exxon Mobil said it has used $9.7bn of higher cash flow from operating activities to reduce debt and to fund the dividend and capital investments.

Due to increased maintenance activity, the firm’s oil-equivalent production for Q2 20201 fell by 2% to 3.6 million barrels per day compared with last year.

Exxon Mobil chairman and CEO Darren Woods said that all of the company’s businesses reported positive momentum during the second quarter as the global economic recovery increased products demand.

Woods said: “We’re realising significant benefits from an improved cost structure, solid operating performance and low-cost-of-supply investments that, together, are generating attractive returns and strong cash flow to fund our capital programme, pay the dividend and reduce debt.

“This was particularly true for our chemical business that delivered their best quarter in company history.

“In our efforts to support society’s energy transition goals, our low carbon solutions business made progress in identifying new opportunities and in establishing new partnerships in carbon capture and storage, hydrogen and low-emission fuels.”

Exxon Mobil aims for $6bn cost savings through 2023 compared with 2019.

The firm has already reported $1bn in cost savings during the first half of 2021 in addition to reductions of $3bn last year.