Exxon's Q2 profit slides amid energy price slump
- Ben Geman, author of Axios Generate
Photo Illustration: Omar Marques via Getty Images
Exxon reported $7.9 billion in second-quarter profits, the company announced this morning, the latest giant to report a sharp decrease amid lower commodity prices.
Driving the news: The oil giant's net earnings tumbled by nearly $10B from the comparable year-ago quarter — which was a record for Exxon — and well below the $11.4B recorded during Q1.
Why it matters: Big Oil's Q2 earnings season mirrors wider changes in energy markets, which have been under pressure in 2023.
- Prices have eased off the 2022 surge following Russia's invasion of Ukraine, but remain high enough to enable large hauls.
Catch up fast: Exxon's results follow steep profits declines by Shell, TotalEnergies and Chevron.
Yes, but: As we noted yesterday, it's all relative. Reuters notes Exxon had its second-best April-June in over a decade, topped only by last year.
What they're saying: CEO Darren Woods said Exxon has improved efficiency and portfolio quality.
- Q2's profit is "two times higher than what we earned in the second quarter of 2018, under comparable industry commodity prices," he said in a statement.
What we're watching: More potential mergers and acquisitions.
- The WSJ reports Exxon and Chevron "have signaled they’re not finished shopping for potential acquisitions."
- Both made large deals in Q2, with Chevron's $7.6B acquisition of PDC Energy and Exxon's $4.9B purchase of Denbury, coveted for its CO2 pipeline network.