ExxonMobil announced estimated second quarter (Q2) earnings of US$1.7 billion (£1.28 billion) compared to US$4.2 billion (£3.1 billion) in the same period in 2015.
The major drop has been attributed to sharply lower commodity prices and weaker refining margins.
“While our financial results reflect a volatile industry environment, ExxonMobil remains focused on business fundamentals, cost discipline and advancing selective new investments across the value chain to extend our competitive advantage,” ExxonMobil’s Chairman and Chief Executive Officer (CEO), Rex Tillman, said.
ExxonMobil Posts $4.7bn Loss in H1
“The corporation benefits from scale and integration, which provide the financial flexibility to invest in attractive opportunities and grow long-term shareholder value,” the executive added.
The company posted upstream earnings of US$294 million (£222 million) for the second quarter of the year, with production volumes essentially unchanged at 4 million barrels of oil equivalent per day.
Exxon noted an increase in the production of liquids from recent start-ups which offset the impact of field decline and downtime events, “notably in Canada and Nigeria”.
Comparing the first half of the year with the same period in 2015, upstream earnings were down by US$4.7 billion (£3.5 billion) and oil production remained flat, while liquids production increased by 150,000 barrels per day (bpd).
Exxon Made Three Major New Discoveries in 2016
Over the period, Exxon announced that drilling results from the Liza-2 well, the second in the Stabroek block offshore Guyana, confirmed a world-class discovery with between 800 million and 1.4 billion barrels of oil equivalent.
In the Gulf of Mexico, the company started production ahead of schedule with project costs under budget.
The initial phase of the project has a gross design capacity of 34,000 barrels of oil per day.
Further north in Alaska, the company started production at Point Thompson and is expected to produce up to 10,000 barrels of natural gas condensate per day and 200 million cubic feet of recycled gas.Last updated on 07:53PM - 30/07/16