Jul 28, 2023 - Energy & Environment

Exxon's Q2 profit slides amid energy price slump

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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.
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