ExxonMobil reported profits of $10.68 billion dollars for the second quarter of 2011 on Thursday, a 41% increase over the same period in 2010.
While downstream and retail operations posted improved margins, the real contributor to Exxon’s bottom line was exploration and production.
Oil-equivalent production increased 10% from the second quarter of 2010. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up over 12%.
The huge profit was achieved despite Exxon spending $5.5 billion on a share buy-back in the period, and capital and exploration expenditures at a record $10.3 billion, up 58% from the second quarter of 2010.
However, as with many other supermajors reporting this quarter, Exxon undershot analysts’ expectations. Shares fell 2% on Thursday before recovering.
Commenting on the results in a company statement, ExxonMobil’s Chariman and CEOÂ Rex Tillerson said: “ExxonMobil recorded strong results during the second quarter of 2011, while investing at a record level of over $10 billion to develop new supplies of energy to meet growing world demand”.
“Second quarter earnings of $10.7 billion were up 41% from the second quarter of 2010, reflecting higher crude oil and natural gas realizations, improved Downstream results and continued strength in Chemicals. First half 2011 earnings of $21.3 billion increased 54% over the first half of 2010”.
