Updated from 1:14 p.m. EDT
, two of the world's largest oil companies, on Tuesday reported second-quarter earnings more than doubled, surpassing Wall Street's estimates, as the companies benefited from surging oil and gas prices.
ExxonMobil, the world's largest integrated oil company, said second-quarter earnings swelled to $4.15 billion, or $1.18 per share, excluding expenses and asset divestiture gains related to the merger of Exxon and Mobil late last year. Those profits compare with $1.86 billion, or 53 cents a share, in the second quarter of 1999. Second-quarter revenue rose to $55.96 billion from $43.28 billion a year earlier.
The Irving, Tex.-based oil giant's current earnings handily beat the consensus estimate among Wall Street analysts surveyed by
First Call/Thomson Financial
of $1.07 a share for the second quarter.
Chevron, the nation's third-largest oil company, said second-quarter earnings excluding special items jumped to $1.14 billion, or $1.75 a diluted share, from $484 million, or 73 cents a diluted share, during the same period a year ago. Revenues rose to $13.2 billion, a significant increase from $8.7 billion the previous year.
Record revenues helped the San Francisco-based oil company squeeze past Wall Street earnings estimates. Analysts surveyed by
First Call/Thomson Financial
had forecast average earnings of $1.74 a share for the company.
Despite the reports of record company earnings, neither company's stock was moving much, midway through the session. ExxonMobil closed Tuesday regular trading down 1 7/8, or 2.4%, at 75 3/8. Chevron finished down 1/16, or 0.1%, at 77 5/16.
In a mid-day conference call, ExxonMobil officials cited lower exploration expenses and higher oil and natural gas prices for the sharp increase in exploration and production business earnings which more than doubled to $2.8 billion, from approximately $1.15 billion earned a year earlier. The company also said capital and exploration spending rose 10% from the first quarter to $2.4 billion and will continue to grow through the end of the year.
ExxonMobil's refining and marketing business also rose sharply to $998 million from $478 million for same year-ago period, due in part to higher refining margins and lower operating expenses.
"These results reflect not only historically high crude oil and natural gas prices, but also the fact that the merger is on track and synergy is well under way," said Lee R. Raymond, ExxonMobil's chairman, in a statement.
Chevron's exploration and production business also buoyed its overall earnings, with U.S. profit increasing to $388 million, from $145 million a year ago, and international exploration and production business growing to $580 million, from $221 million last year.
In a prepared statement, Chevron Chairman and CEO Dave O'Reilly said the company's strong earnings primarily reflected strong growth in its worldwide exploration and production and higher prices for crude oil and natural gas. More than 90% of the improvement in operating earnings came from Chevron's exploration and production business.