ExxonMobil has announced second quarter 2010 earnings of US$7.6 billion, an increase of 85% or $3.5 billion from the second quarter of 2009 saying that oil-equivalent production from the company’s Qatari assets helped significantly in achieving its 8% increase over the same period last year. Capital and exploration expenditures were at $6.5 billion, down 1% from the second quarter of 2009.
Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up about 10%. Exxon’s cash flow from operations and asset sales was $9.6 billion, including asset sales of $0.5 billion for the quarter.
The merger with XTO Energy, a US unconventional natural gas and oil producer, was completed on June 25, 2010, making ExxonMobil the largest US natural gas producer, according to a company statement. Through this transaction ExxonMobil has acquired a resource base in excess of 45 trillion cubic feet equivalent at a cost of under $1 per kcf equivalent.
Also in the second quarter, ExxonMobil and Synthetic Genomics Inc. (SGI) announced the opening of a greenhouse facility paving the way for research and testing in its algae biofuels programme. Under the programme, SGI and ExxonMobil researchers are using the facility to test whether large-scale quantities of affordable fuel can be produced from algae.
Company chairman, Rex Tillerson commented:
“ExxonMobil’s focus on operational excellence continues to deliver strong results. Second quarter earnings, excluding special items, of $7.6 billion, were up 85% from second quarter of last year reflecting higher crude oil realisations, improved downstream margins, and strong chemical results. First half earnings, excluding special items, of $13.9 billion increased by 60% over the first half of 2009.
“Oil-equivalent production increased by 8% over the second quarter of 2009 driven by contributions from our world-class assets in Qatar,” he said.
“We continued our focus on investing for the future with capital and exploration spending of $13.4 billion year to date, up 9% from the first half of last year. Over $3 billion was returned to shareholders in the second quarter through dividends and share purchases to reduce shares outstanding. The Corporation’s second quarter 2010 earnings and production volumes included de minimis amounts for the period from June 25 to June 30 resulting from the merger with XTO Energy Inc. which closed on June 25, 2010.”
