ExxonMobil Corporation XOM posted second-quarter 2015 earnings of $1.00 per share, missing the Zacks Consensus Estimate of $1.11. The bottom line also decreased from $2.05 in the year-ago quarter. The decline stemmed from an environment of persistently falling commodity prices.
In the reported quarter, the energy behemoth witnessed lower commodity prices in the Upstream business, offset by improved margins.
Total revenue in the quarter decreased from $111.2 billion in the year-ago quarter to $74.1 billion. But the top line came above the Zacks Consensus Estimate of $66.4 billion.
Operational Performance
Upstream: Quarterly earnings for the segment were $2 billion, down $5.9 billion year over year. The decrease stemmed from lower liquids and gas realizations. Higher volumes partially offset the downside.
Production averaged 3.979 million barrels of oil-equivalent per day, up 3.6% year over year. Liquid production increased 11.9% year over year to 2.291 million barrels per day. Natural gas production was 10,128 MCF/d (millions of cubic feet per day), down 5.8% from the year-ago period.
Downstream: The segment recorded profits of $1.5 billion in the second quarter, up $795 million year over year, mainly attributable to stronger margins. This was partially offset by unfavorable volume and mix effects.
ExxonMobil's refinery throughput averaged 4.3 million barrels per day, down 2.8% from the year-earlier level.
Chemical: This unit contributed approximately $1.2 billion to the company's profits, up $405 million from the year-earlier quarter. The upside came on the back of lower feedstock costs that gave a boost to margins.
Financials
During the quarter, ExxonMobil generated cash flow from operations and asset sales of $9.4 billion. The company returned $4.1 billion to shareholders through dividends and share repurchases. Capital spending decreased 16% year over year to $8.3 billion.
Zacks Rank
ExxonMobil currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are Linn Energy, LLC LINE, Gulfmark Offshore, Inc. GLF and Cheniere Energy, Inc. LNG. All these stocks sport a Zacks Rank #1 (Strong Buy).
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