ExxonMobil has announced estimated second quarter 2018 earnings of $4bn, compared with $3.4bn a year earlier. Cash flow from operations and asset sales was $8.1bn, including proceeds associated with asset sales of $307m.
However, the company’s earnings decreased due to lower-than-expected upstream production, weaker chemical margins, and unfavourable foreign exchange impact, causing it to miss its earnings expectations. As a result, its stock dropped almost 3% post the announcement of its results.
During the quarter, the corporation distributed $3.5bn in dividends to shareholders. Capital and exploration expenditures were $6.6bn, up 69 percent from the prior year, reflecting key investments in Brazil, the U.S. Permian Basin and Indonesia.
Oil-equivalent production was 3.6 million barrels per day, down 7 percent from the second quarter of 2017. Excluding entitlement effects and divestments, liquids production increased as growth in the Permian and Bakken in the U.S. and Hebron in Canada more than offset decline and higher downtime driven by scheduled maintenance. Natural gas volumes decreased 10 percent, excluding entitlement effects and divestments, largely due to a continuing shift in U.S. unconventional development from dry gas to liquids and to downtime in Qatar, Australia, and Papua New Guinea.
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1st August 2018