Key facts
- ExxonMobil reported adjusted quarterly earnings of $14.7 billion, its highest in four years.
- The company's earnings per share of $3.52 fell short of the $3.60 analyst estimate.
- Higher oil prices and improved refining margins, influenced by Middle East geopolitical tensions, boosted profits.
- Production disruptions in Qatar and the UAE were offset by record output from the Permian Basin.
- ExxonMobil returned $9.4 billion to shareholders via dividends and share buybacks in the quarter.
ExxonMobil reported its largest quarterly profit in four years, with adjusted earnings reaching $14.7 billion, or $3.52 per share, though this figure fell short of the $3.60 per share consensus estimate. The strong profit was driven by higher oil prices and improved refining margins, influenced by ongoing geopolitical tensions in the Middle East, particularly the U.S.-Iran conflict. This performance represents a significant turnaround from the previous quarter and more than doubled the profit from the same period last year.
Exxon's CEO Darren Woods stated the company executed well as conditions changed, moving products where they were needed. The uncertainty surrounding the ceasefire between the U.S. and Iran contributed to an average Brent crude price of $96.68 per barrel in the second quarter, a 23% increase from the first quarter.
Production levels saw some disruptions, with approximately 450,000 barrels per day of liquefied natural gas production from Qatar offline due to attacks, and about 150,000 barrels per day offline from an oilfield in the United Arab Emirates. These losses were partially offset by record production from the Permian Basin in the U.S., which reached over 1.8 million barrels per day, and an upcoming increase in production capacity from Guyana.
ExxonMobil returned $9.4 billion to shareholders in the second quarter, comprising $4.3 billion in dividends and $5.1 billion in share repurchases, keeping the company on track for its $20 billion buyback target for the year. The company also reduced its net debt by $7 billion during the quarter. The substantial profits could lead to further criticism from U.S. President Donald Trump, who has previously accused oil companies of price gouging.