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ExxonMobil reports record second quarter earnings
Exxon Mobil Corp. has reported record results for the second consecutive quarter. Excluding merger effects and special items, the company said July 25, second quarter earnings were $4,150 million ($1.18 per share), up $2,295 million from the second quarter last year. Including net favorable merger effects of $380 million, net income of $4,530 million ($1.28 per share) increased $2,576 million from the second quarter last year.
Revenue for the second quarter of 2000 totaled $55,956 million compared with $43,277 million in 1999. High prices, merger credited “These results reflect not only historically high crude oil and natural gas prices, but also the fact that the merger is on track and synergy capture is well under way,” said ExxonMobil’s Chairman Lee R. Raymond.
“Projected near-term merger synergies of $4.6 billion before tax are 65 percent higher than we originally projected and have grown by 20 percent from the numbers we announced last December,” Raymond said Aug. 1.
The majority of improvement in profit came from outside the United States and from upstream business due to higher crude oil and natural gas prices.
“Upstream earnings were $2.8 billion and represented a third consecutive record quarter. Upstream results benefited from higher crude oil prices, which were up over $11 per barrel from the second quarter of 1999, reflecting the impact of tight worldwide crude oil markets.” Raymond said that higher natural gas prices, particularly in the United States, also contributed to improved earnings.
Liquids production was up 3 percent, reflecting new production from the North Sea and Venezuela and increased production from eastern Canada.
Raymond also said that during the quarter the company spent $2,424 million on capital and exploration projects, up about 10 percent from the first quarter.
“Capital expenditures will continue to increase throughout the rest of the year,” he said.
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