10-QPeriod: Q2 FY2021

EXXON MOBIL CORP Quarterly Report for Q2 Ended Jun 30, 2021

Filed August 4, 2021For Securities:XOM

Summary

ExxonMobil reported a significant turnaround in its financial performance for the second quarter and first half of 2021, moving from substantial losses in the prior year to robust profits. This recovery was primarily driven by a rebound in Upstream segment earnings, fueled by higher crude oil and natural gas realizations, and strong performance in the Chemical segment, characterized by improved margins and higher sales volumes. The company's overall revenues more than doubled year-over-year for the quarter, reflecting the recovering global demand for energy and petrochemicals. While the Downstream segment experienced a net loss for the quarter, overall profitability was significantly boosted by the Upstream and Chemical segments. The company also demonstrated improved cash flow from operations, enabling it to reduce debt and continue shareholder distributions, including dividends. Capital expenditures remained lower year-over-year, indicating a strategic focus on capital discipline amidst a recovering but still somewhat uneven global economic landscape. The company is also actively managing its portfolio, with significant divestments planned, which are expected to contribute to future cash flows and gains.

Financial Highlights

43 data points
Beta

Revenue

$65.94B

Net Income

$4.69B

7.1% Net Margin

EPS (Diluted)

$1.10

Total Assets

$337.29B

Cash & Equivalents

$3.46B

Free Cash Flow

$6.90B

Financial Statements
Beta
Revenue$65.94B
SG&A Expenses$2.35B
Operating Expenses$61.44B
Interest Expense$254.00M
Net Income$4.69B
EPS (Basic)$1.10
EPS (Diluted)$1.10
Shares Outstanding (Basic)4.28B

Key Highlights

  • 1Net income attributable to ExxonMobil surged to $4.69 billion for Q2 2021, a dramatic improvement from a loss of $1.08 billion in Q2 2020.
  • 2For the first six months of 2021, net income was $7.42 billion, compared to a loss of $1.69 billion in the same period of 2020.
  • 3Upstream segment earnings significantly rebounded, driven by higher commodity prices and improved realizations, totaling $3.19 billion for Q2 2021 versus a loss of $1.65 billion in Q2 2020.
  • 4Chemical segment earnings also saw substantial growth, reaching $2.32 billion for Q2 2021, up from $0.47 billion in Q2 2020, due to higher margins and volumes.
  • 5Total revenues and other income more than doubled in Q2 2021 to $67.74 billion, up from $32.61 billion in Q2 2020.
  • 6Capital and exploration expenditures decreased significantly to $6.94 billion for the first six months of 2021, down from $12.47 billion in the prior year period, reflecting disciplined capital allocation.
  • 7The company returned $7.4 billion to shareholders through dividends in the first six months of 2021.

Frequently Asked Questions

The substantial increase in net income was primarily driven by a strong recovery in the Upstream segment, benefiting from higher crude oil and natural gas prices (realizations), and improved performance in the Chemical segment due to higher margins and volumes. Lower expenses across segments also contributed to the improved profitability.

ExxonMobil has significantly reduced its capital and exploration expenditures, spending $6.9 billion in the first six months of 2021 compared to $12.5 billion in the same period of 2020. The company expects 2021 spending to be towards the lower end of its guidance range and plans to prioritize investments in advantaged projects, balance sheet strengthening, and shareholder distributions, rather than increasing capital spending even if market conditions improve above planning basis.

The Downstream segment reported a net loss for Q2 2021, although this was an improvement from the prior year's performance. While margins in this segment are recovering, they remain lower compared to historical levels. The company is closely monitoring industry and economic conditions as the global recovery remains uneven.

Yes, ExxonMobil is actively managing its portfolio. In Q1 2021, an agreement was signed to sell non-operated upstream assets in the UK North Sea for over $1 billion. In Q2 2021, an agreement was signed to sell the global Santoprene™ business for $1.15 billion. Both are expected to close in late 2021 and are anticipated to result in gains. Additionally, the company is undertaking targeted workforce reductions globally to improve efficiency, with associated charges expected to be less than $100 million in 2021.