NEW YORK, US – ExxonMobil reported a big drop in second-quarter profits on Friday, citing lower refining margins and natural gas prices compared with the year-ago period in the aftermath of Russia’s invasion of Ukraine.
The big US oil company reported profits of $7.9 billion, down 56 percent, joining Shell and Total, which on Thursday also released results with sharply lower profits.
Revenues were $82.9 billion, down 28 percent from the year-ago period.
Natural gas prices are down sharply from the year-ago period following a mild winter, while the comparative weakness in refinery margins reflects sluggish economic conditions in key markets that have weighed on demand.
Crude prices have also retreated from the year-ago levels when worries about the loss of Russian oil supply boosted prices.
But ExxonMobil still scored $19.3 billion in profits for the first half of 2023, a figure that could attract attention from figures such as President Joe Biden, who has often called on oil companies to steer excess cash towards new energy production rather than shareholder distributions.
In the second quarter, ExxonMobil spent $8 billion on share repurchases and dividends.
Shares slipped 0.6 percent to $104.78 in pre-market trading.