ExxonMobil earnings fall on ‘significantly weaker’ refining margins, price weakness

Steve Sutherlin, PNA managing editor

Exxon Mobil Corp. said Aug. 1 its second quarter 2002 earnings were $2.7 billion or 39 cents per share excluding merger effects and special items, versus $4.4 billion or 64 cents per share in the record second quarter of 2001.

Revenue for the second quarter of 2002 totaled $50.9 billion compared with $56.1 billion in 2001.

“The reduction in earnings reflected weakened conditions in most business segments, including lower price levels of crude oil and natural gas, significantly weaker refining margins and adverse foreign exchange effects,” said Lee R. Raymond, ExxonMobil chairman. In second quarter 2002 the company spent $3.4 billion on capital and exploration projects, compared with $2.8 billion for the period last year, it said.

The company also bought back 27 million shares during the second quarter at a gross cost of $1.1 billion, it said, to offset the dilution associated with benefit plans and to reduce common stock outstanding.