ExxonMobil Q2 results

Rex W. Tillerson, ExxonMobil Chairman said of the results, ‘ExxonMobil’s financial results were achieved through strong operational performance and portfolio management. We continue to enhance shareholder value by funding capital projects and delivering robust shareholder returns through dividends and share purchases.

‘Upstream production for the year remains in line with plans and we continue to add volumes from our high quality development portfolio through assets such as the Papua New Guinea LNG project, which started up ahead of schedule during the quarter.

‘Second quarter 2014 earnings were US$ 8.8 billion, up 28% from the second quarter of 2013, reflecting strong operations and asset divestments. Capital and exploration expenditures for the first half of 2014 were US$ 182 billion, down 17% from the first half of 2013.

‘Through the first half of 2014, the corporation distributed US$ 11.7 billion to shareholders through dividends and share purchases to reduce shares outstanding.’

Q2 highlights

• Earnings of US$ 8,780 million, increased US$ 1,920 million or 28% from Q2 2013.
• Earnings per share were US$ 2.05, an increase of 32%.
• Capital and exploration expenditures were US$ 9.8 billion, down 4% from the second quarter of 2013.
• Oil equivalent production decreased 5.7% from the second quarter of 2013. Excluding the impact of the expiry of the Abu Dhabi onshore concession, production decreased 2.3%.
• Cash flow from operations and asset sales was US4 12.8 billion, including proceeds associated with asset sales of US$ 2.6 billion.
• The corporation distributed US$ 6 billion to shareholders in the second quarter of 2014, including US$ 3 billion in share purchases to reduce shares outstanding.
• Dividends per share of US$ 0.69 increased 9.5% compared with the Q2 2013.
• ExxonMobil shipped the first cargo of LNG from the PNG LNG project ahead of schedule.
• PNG LNG is expected to produce more than 9 trillion ft3 of gas over its estimated 30 years of operations.
• Offshore Sakhalin Island in Russia, the 42 000 t topsides of the Berkut platform were installed onto the gravity based structure at the Arkutun-Dagi field.
• Construction started on the ethane cracker at the Baytown, Texas, complex and associated premium product facilities in Nearby Mont Belvieu.

Downstream

Earnings were US$ 711 million, up US$ 315 million from the second quarter of 2013. Weaker refining margins decreased earnings by US$ 330 million. Volume and mix effects increased earnings by US$ 280 million. All other items, including asset management impacts and lower operating expenses, increased earnings by US$ 370 million.

Earnings from the US downstream were US$ 536 million, up US$ 288 million from the second quarter of 2013. Non-US downstream earnings of US$ 175 million were US$ 27 million higher than last year.

Adapted by Claira Lloyd

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/01082014/exxonmobil-q2-2014-results/