ExxonMobil Q2 chems profits drop 32% to $687m

31 July 2008 14:13 [Source: ICIS news]

LONDON (ICIS news)--ExxonMobil’s second quarter chemicals earnings fell 32% year-on-year as plummeting margins were only partly offset by favourable foreign exchange and tax effects, the US oil giant said on Thursday.

The chemicals segment reported net income of $687m (€441m) for the quarter, down from $1.11bn in the same period last year.

ExxonMobil said lower margins had reduced chemicals earnings by $500m, while prime product sales had decreased by 179,000 tonnes year-on-year to 6.72bn tonnes.

Chemical earnings in the US had halved from the same period last year at $102m, while earnings in the rest of the world dropped 28% to $585m.

Overall, the oil group’s second quarter net income was up 14% to $11.68bn, driven by record crude oil and natural gas prices.

These factors were partially offset by lower refining and chemical margins, lower production volumes and higher operating costs, said the company.

Capital and exploration project spending for the second quarter was up 38% year-on-year to $6.97bn. Spending in the chemicals sector increased to $797m, compared with $276m over the same period last year.

ExxonMobil is the world’s largest publicly traded oil company.

($1 = €0.64)

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By: Mark Watts
+44 20 8652 3214

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