Summary
ExxonMobil Corporation's second quarter and first six months of 2018 performance showed a significant increase in net income attributable to ExxonMobil, rising to $3.95 billion and $8.60 billion, respectively, compared to the prior year periods. This improvement was primarily driven by higher crude oil and natural gas realizations, particularly in the Upstream segment, which saw substantial earnings growth. Despite an increase in capital and exploration expenditures, the company maintained a strong liquidity position with total cash and cash equivalents of $3.43 billion at the end of the second quarter. While the Upstream segment demonstrated robust performance, the Downstream and Chemical segments experienced a decline in earnings due to weaker refining margins and chemical product margins, respectively. The company also noted increased corporate and financing expenses, largely attributed to changes in tax items and higher pension costs. Overall, ExxonMobil reported a 17% increase in earnings per diluted share for the first six months of 2018, indicating a positive financial trajectory driven by favorable commodity prices.
Financial Highlights
40 data points| Revenue | $71.46B |
| SG&A Expenses | $2.99B |
| Operating Expenses | $66.99B |
| Interest Expense | $147.00M |
| Net Income | $3.95B |
| EPS (Basic) | $0.92 |
| EPS (Diluted) | $0.92 |
| Shares Outstanding (Basic) | 4.27B |
Key Highlights
- 1Net income attributable to ExxonMobil increased by 18% to $3.95 billion in Q2 2018 and by 17% to $8.60 billion for the first six months of 2018, compared to the prior year.
- 2Upstream segment earnings significantly improved, driven by higher liquids realizations, with U.S. Upstream earnings up $622 million and Non-U.S. Upstream earnings up $1.234 billion in Q2 2018.
- 3Total revenues and other income grew by 26.6% to $73.501 billion in Q2 2018 and by 21.4% to $141.712 billion for the first six months of 2018.
- 4Capital and exploration expenditures increased by 69% to $6.627 billion in Q2 2018 and by 42% to $11.494 billion for the first six months of 2018, reflecting increased U.S. drilling activity.
- 5Downstream and Chemical segment earnings decreased in Q2 2018 compared to Q2 2017, primarily due to weaker margins and downtime impacting operations.
- 6The effective income tax rate increased to 44% in Q2 2018 and 42% for the first six months of 2018, up from 31% and 35% in the respective prior year periods, mainly due to the absence of favorable tax items and a higher share of earnings in higher tax jurisdictions.
- 7The company distributed $6.8 billion in dividends to shareholders in the first six months of 2018 and repurchased approximately 5 million shares to offset dilution from benefit plans.