Summary
ExxonMobil Corporation reported a significant decrease in net income attributable to shareholders for the second quarter and first six months of 2015 compared to the same periods in 2014. This decline is primarily driven by lower commodity prices impacting upstream realizations, which more than offset gains in downstream and chemical segments. Despite the lower earnings, the company maintained capital discipline, with capital and exploration expenditures decreasing by 12% year-over-year for the first six months. ExxonMobil also continued to return capital to shareholders through dividends and share repurchases, although the pace of share purchases was reduced compared to the prior year. The balance sheet shows a slight decrease in total assets and equity. Notably, long-term debt increased significantly due to an $8.0 billion issuance in the first quarter of 2015, leading to a higher debt-to-capital ratio. Cash flow from operations also declined, reflecting the lower earnings. The company continues to navigate a challenging commodity price environment while focusing on operational efficiency and strategic investments.
Financial Highlights
41 data points| SG&A Expenses | $2.83B |
| Operating Expenses | $67.16B |
| Interest Expense | $85.00M |
| Net Income | $4.19B |
| EPS (Basic) | $1.00 |
| EPS (Diluted) | $1.00 |
| Shares Outstanding (Basic) | 4.20B |
Key Highlights
- 1Net income attributable to ExxonMobil decreased significantly by 52% for the three months ended June 30, 2015, and by 49% for the six months ended June 30, 2015, compared to the prior year periods, primarily due to lower upstream realizations.
- 2Earnings per diluted share fell to $1.00 in Q2 2015 and $2.17 in the first six months of 2015, down from $2.05 and $4.15 respectively in the comparable 2014 periods.
- 3Capital and exploration expenditures for the first six months of 2015 were $16.0 billion, a decrease of 12% from $18.2 billion in the same period of 2014.
- 4The company distributed $8 billion to shareholders in the first half of 2015, comprising $6 billion in dividends and $2 billion in share repurchases, though share repurchases were lower than the prior year.
- 5Long-term debt increased by $7.8 billion to $19.4 billion as of June 30, 2015, driven by an $8.0 billion issuance in Q1 2015, leading to an increase in the debt-to-total capital ratio to 15.9% from 13.9% at year-end 2014.
- 6Upstream earnings experienced a substantial decline of $5.8 billion in Q2 2015 and $10.8 billion in the first six months of 2015, largely due to lower commodity prices and, in the case of natural gas, regulatory restrictions in the Netherlands.
- 7Downstream and Chemical segments showed improved performance, with Downstream earnings up $795 million in Q2 2015 and Chemical earnings up $405 million in Q2 2015, driven by stronger margins.