NEW YORK: US oil giant ExxonMobil reported higher second-quarter profits despite pumping less oil and gas than it did a year ago.
Exxon, the biggest US oil company and the second-largest US company in terms of market capitalisation after Apple, said earnings came in at $8.8bn, up 28 percent from the year-ago level.
Production of oil and gas declined 5.7 percent, but profitability in the exploration and production segment rose 25 percent to $7.9bn. Exxon said “higher realisations” for its output added $580m. Lower oil and gas volumes is often seen as a red flag in the oil business. But Exxon has emphasised that it will not sacrifice profitability for higher output, meaning it will not produce oilfields unless they are highly profitable.
Exxon’s downstream earnings rose nearly 80 percent to $711m, while chemicals earnings rose 11.2 percent to $841m.