Washington - Arabstoday
US energy giant ExxonMobil posted strong profit gains for the second quarter yesterday, boosted by a one-time gain and drops in capital and exploration spending and divestments. Net income was $15.9bn in the April-June period, an increase of 48.6% from a year ago, lifted by $7.5bn in gains related to divestments and tax-related items, including the reduction of its stake in Japanese firm TonenGeneral Sekiyu. Exxon Mobil Corp reported earnings of $3.41 per share, up 56% from the second quarter of 2011. Excluding the one-time gains, EPS was roughly $1.80, well below Wall Street’s $1.95 estimate. Shares in the blue-chip Dow member were up 0.6% in morning trade amid a sharp market rally that pushed the Dow Jones Industrial Average up by more than one%. Total revenues rose 1.5%, to $127.4bn, widely topping expectations of $115.1bn. Oil-equivalent production fell 5.6%; excluding certain impacts, production was essentially flat, the oil and natural gas giant said. ExxonMobil chairman Rex Tillerson said the results reflected the company’s long-range investment strategy amid challenging economic conditions. “Despite global economic uncertainty, we continue to invest throughout the business cycle taking a long-term view of resource development,” Tillerson said in a statement. Capital and exploration spending totaled $9.3bn in the second quarter, down 9.0% from the same period in 2011. For the first six months of the year, ExxonMobil said it had spent a record $18.2bn. Tillerson said that ExxonMobil is making progress on plans to invest roughly $37bn per year over the next five years to help meet the global demand for energy. from gulf times.