NEW YORK, July 31 — ExxonMobil’s second-quarter profits more than doubled to US$14.5 billion (RM60 billion) on surging oil prices and refining margins due to the Middle East war, the company reported today.
The results come on the heels of massive profits reported by other petroleum giants in the aftermath of Iran’s virtual shutdown of the Strait of Hormuz, a key waterway for crude oil and liquefied natural gas shipments.
With revenues of US$116 billion, up 42 per cent, ExxonMobil pointed to higher oil prices as a factor but described the level as “within historical ranges,” citing the effects of reduced refining capacity and crude inventory releases as offsets that kept crude prices from rising more.
But refining margins, the profit from gasoline and other products minus crude oil costs, “reached record levels in the quarter,” ExxonMobil said in prepared remarks that cited a nearly nine per cent drop in global capacity because of war-related dislocations.
“The market environment was clearly supportive. But market conditions alone do not explain results,” said the company, which also touted “reliable operations, optimization in advantaged assets and high-value products across our businesses.”
While the effects from the war mostly benefited ExxonMobil, damage to key liquefied natural gas assets in Qatar dented output.
ExxonMobil returned US$9.4 billion to investors during the quarter through dividends and share repurchases.
Shares fell 1.5 per cent in pre-market trading. — AFP
