New York: US petroleum giants ExxonMobil and Chevron reported big jumps in second-quarter profits on Friday, the latest boost from a recovery in oil prices that still feels shaky to many industry officials.
Exxon’s profit for the quarter ending June 30 nearly doubled to $3.4 billion, while Chevron nabbed $1.5 billion in earnings, up from a $1.5 billion loss in the year-ago period.
The big improvement in profits came on the heels of a recovery in oil prices in the wake of agreements by the Organization of the Petroleum Exporting Countries to limit production. Oil prices in the second quarter were about 15 per cent above the level in the comparable 2016 quarter.
“These solid results across our businesses were driven by higher commodity prices and a continued focus on operations and business fundamentals,” Exxon Chief Executive Darren Woods said.
Other factors included better refining margins, higher natural gas prices and a restrained approach to capital spending.
Chevron Chief Executive John Watson said, “Second quarter results improved substantially from a year ago.”
“We’re delivering higher production with lower capital and operating expenditures.”
Despite the big jump, Exxon’s profits missed Wall Street expectations. Analysts also hit the company for a one per cent drop in oil and gas production compared with the year-ago period.
By contrast, Chevron’s earnings bested analyst expectations and reflected a 10 per cent increase in oil and gas production amid solid output at its Gorgon LNG project in Australia and its shale properties in Texas.
In morning trading, Exxon dropped 3.0 per cent, while Chevron gained 2.1 per cent. — AFP
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