MOSCOW (MRC) -- ExxonMobil’s profits tumbled as the company said oil prices were returning to “normal”, said the company.
The US’s biggest oil company posted net income of USD7.9bn for the second quarter, less than half of the unprecedented haul of USD17.9bn it reported during the same period in 2022. Excluding last year, the profit figure, which came in broadly in line with Wall Street estimates, was the company’s strongest for this time of year in more than a decade.
“We expected prices to moderate after record earnings,” Kathy Mikells, Exxon’s chief financial officer, told the Financial Times. “If you look at the overall price environment, across most of our businesses, we’re back within what we would call the 10-year normal range.”
The fall in Exxon’s earnings mirrors drops reported by rival oil majors as commodity prices recede after surging in the wake of Moscow’s full-scale invasion of Ukraine last February. Smaller US rival Chevron reported earnings of $6bn for the period, down by about half compared with a year ago.
Italy’s Eni reported adjusted net profits of €1.94bn on Friday, down 49 per cent from the second quarter of 2022 but still ahead of average analysts’ estimates of €1.6bn.
Shell and TotalEnergies reported similar falls this week with second-quarter earnings down 56 per cent and 49 per cent, respectively. Analysts expect BP to follow a similar course when it reports next week.
We remind, ExxonMobil Catalysts and Licensing LLC and Axens have signed an exclusive licensing alliance agreement allowing Axens to include ExxonMobil’s MTBE Decomposition Technology for high purity isobutylene in its portfolio. Used in the production of high-reactivity polyisobutylene and butyl rubber, this technology enables Axens’ customers to better address the growing demand for petrochemical intermediates over the next decade.