Exxon Mobil (XOM) - Get Exxon Mobil Corporation Report posted better-than-expected second quarter earnings Friday as multi-year highs in global oil prices boosted sales to twice the levels seen during last year's pandemic trough.
Exxon said adjusted earnings for the three months ending in June were pegged at $1.10 per share, up from a 70 cents per share loss from the same period last year and 12 cents ahead of the Street consensus forecast.
Group revenues, Exxon said, surged 107% to $67.75 billion, firmly topping analysts' estimates of $65.6 billion.
West Texas Intermediate crude prices traded between $63 and $75 per barrel over the three months ending in June, a range that was around 300% higher than the deep pandemic troughs recorded over the same period last year.
Production levels were around 2% lower from last year, at 3.6 million barrels per day, as the group continues to ease its reliance on fossil-fuel gains amid shareholder pressure from vocal activists.
“Positive momentum continued during the second quarter across all of our businesses as the global economic recovery increased demand for our products,” said CEO Darren Woods. “We’re realizing significant benefits from an improved cost structure, solid operating performance and low-cost of-supply investments that, together, are generating attractive returns and strong cash flow to fund our capital program, pay the dividend and reduce debt. This was particularly true for our Chemical business that delivered their best quarter in company history."
"In our efforts to support society's energy transition goals, our Low Carbon Solutions business made progress in identifying new opportunities and in establishing new partnerships in carbon capture and storage, hydrogen and low-emission fuels," he added.
Exxon shares were marked 1.3% lower in early trading immediately following the earnings release to change hands at $58.30 each.
Earlier in the session, Exxon's smaller rival, Chevron (CVX) - Get Chevron Corporation Report, posted Street-beating earnings of $1.60 per share as revenues surged 178% from last year to $37.6 billion.
Chevron also pledged to resume share buybacks, at a rate of around $2 billion to $3 billion per year, as free cash flow hit the highest levels in two years thanks to the broader oil market rebound.