ExxonMobil Reports 23.4% Drop In Profits On Lower Crude Prices

ExxonMobil reported a drop in second-quarter profits Friday as the hit from lower crude prices more than offset a boost from higher oil and gas production.

The petroleum giant reported profits of $7.1 billion, down 23.4 per cent from the year-ago period. Crude prices were under $65 a barrel, more than $10 less than the level in the 2024 quarter.

Revenues fell 12.4 per cent to $81.5 billion.

ExxonMobil pointed to production growth in core oil and gas holdings in Guyana and the Permian Basin, a shale-rich region in the states of Texas and New Mexico.

The company also said it brought online three more of 10 “key” projects due to start in 2025 that will lead to growth.

The projects included upgrades to existing facilities in Singapore and Britain to produce more high-value products from low-quality petroleum feedstocks, as well as a renewable diesel venture in Canada.

“These projects are the most recent examples of how our push into higher-value products will drive earnings and profitability long into the future,” ExxonMobil said in prepared remarks for a conference call later Friday.

The oil giant continued its practice of returning cash to shareholders through dividends and share repurchases. Since acquiring Pioneer Natural Resources, ExxonMobil has bought back around 40 per cent of the shares issued to finance the transaction, the company said.

ExxonMobil shares rose 0.8 per cent in pre-market trading.