Exxon Mobil’s Q2 Profit Surges on Asset Sales (XOM)

PUBLISHED: Jul 26 2012 @ 09:37 | Comments (0) | More info about Ed Liston

U.S.’s largest oil company, Exxon Mobil Corporation (NYSE:XOM) today reported a sharp rise in its second-quarter profit, helped by asset sales.

XOM reported second-quarter profit of $15.9 billion, or $3.41 per share, compared to $10.7 billion, or $2.18 per share reported for the same period in the previous year. XOM’s bottom-line benefited from a $7.5 billion gain related to asset sales, which included the sale of the company’s stake in its Japanese fuel and lubricants business to TonenGeneral Sekiyu K.K.

Excluding the asset sales, XOM’s second-quarter profit dropped 22% to $8.4 billion, or $1.80 per share, the smallest operating profit since the third quarter of 2010.

Overall, second quarter turned out to be a challenging one for XOM as the company produced less oil and natural gas. The company also saw lower prices for both, oil and gas.

XOM’s total production dropped 5.6% in the second quarter. U.S. crude oil prices dropped 8.8% in the second quarter, while natural gas prices fell 46.2% in the quarter.

CEO Rex Tillerson said that despite the global economic uncertainty, the company continues to invest throughout the business cycle taking a long-term view of resource development.

XOM stock is higher in early trading today. At last check, the stock was up 0.72% to $85.85.

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