Exxon Mobil earns $4.7 billion in Q2 2021

On July 30, 2021, Exxon Mobil Corporation announced that it expects earnings of $4.
7 billion in the second quarter of 2021, assuming a diluted EPS of $1.
10, compared to a loss of $1.
1 billion in the second quarter of 2020
.
Capital and exploration expenditures were $3.
8 billion in the second quarter, bringing the first half of 2021 to $6.
9 billion, in line with the planned reduction in first-half activity
.
The company expects higher planned spending in the second half of the year on major projects, including Guyana, Brazil, Permian and Chemicals, with full-year spending approaching the lower end of the guidance range of $16 billion to $19 billion
.
 

Second Quarter 2021 Results and Management Outlook

Second-quarter 2020 earnings increased by $5.
8 billion, driven by oil and gas demand and best-ever quarterly contributions from chemicals and lubricants;

Cash flow from operating activities of $9.
7 billion to fund dividends, capital investments and debt reduction;

The Low Carbon Solutions business drives multiple CCS opportunities and low emission fuel programs;

Portfolio improvement activities including the signing of an agreement to sell the Santoprene TM chemical business for $1.
15 billion, a positive funding decision for the Bacalhau development project in Brazil, and exploration success in Guyana;

Oil-equivalent production in the second quarter was 3.
6 million barrels per day, down 2% from the second quarter of 2020, due to increased maintenance activities
.
Excluding equity effects, divestments and government mandates, oil-equivalent production increased 3%, including increases in the Permian and Guyana
.
 

"All of our businesses continued to enjoy positive momentum in the second quarter as the global economic recovery increased demand for our products," said Darren Woods, chairman and chief executive officer
.
  

"We are reaping significant benefits from our improved cost structure, solid operating performance and low-cost supply investments, which together generate attractive returns and strong cash flows to fund our capital plan, pay dividends and Debt reduction
.
This is especially true for our Chemicals business, which delivered the best quarterly performance in company history
.
As we work to support society’s energy transition goals, our Low Carbon Solutions business is identifying new opportunities and Progress has been made on new partnerships for carbon capture and storage, hydrogen and low-emission fuels
.
" 

Second Quarter Business Highlights 

upstream

The average realisation of crude oil was up 13% from the first quarter
.
Natural gas realizations increased 1% from the previous quarter
.

Liquid volumes were down 3% from the first quarter, driven by increased planned maintenance activity
.
Natural gas sales fell 10%, driven by a seasonal drop in demand
.

During the quarter, Permian production averaged 400,000 barrels of oil equivalent per day, a 34% increase from the second quarter of 2020
.
The focus remains on continuing to grow positive free cash flow by reducing overall development costs and enhancing oil recovery
.
Efficiency gains and technical applications
.

downstream

Industry fuel margins have improved from the first quarter, but remain at the low end of their historical range due to the ongoing impact of the market's oversupply
.
Lubricants performed strongly, supported by lower operating usage and improved margins
.

Overall refining throughput was up 3% from the first quarter, when winter storms in Texas disrupted operations
.
The company continues to manage refinery operations based on fuel demand and integrated chemical manufacturing needs
.

chemical

Strong underlying operations supported the best-ever quarterly earnings of $2.
3 billion, reflecting solid operations, higher margins and continued cost control
.

Industry margins improved in the quarter due to higher product prices, reflecting continued strong demand and regional supply constraints
.
The advantage of ethane feedstock in North America is growing
.

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ExxonMobil signed an agreement with Celanese to sell its global Santoprene TM chemical business for $1.
15 billion, subject to working capital and other adjustments
.
The sale advances strategic business goals, including two manufacturing sites in the United States and the United Kingdom
.
The transaction is expected to close in the fourth quarter of 2021, subject to standard prerequisites including regulatory approvals
.

ExxonMobil continues to advance its major deepwater developments in Guyana, including announcing new discoveries at Uaru-2, Longtail-3 and Whiptail, adding confidence in resource quality and scale and supporting seven to 10 floating The Production Potential, Storage and Offloading (FPSO) facility is located in the Stabroek block
.
Exploration, appraisal and development drilling continues, with a total of six drillships currently operating offshore Guyana
.
The company's high-return development projects are still on schedule, with Liza Phase 2 scheduled to launch in 2022, Payara in 2024 and Yellowtail in 2025
.

The company continues to make progress on the previously announced transformation of its terminals in Slagen, Norway and Altona, Australia, ensuring a continuous and reliable supply of fuel to these markets through the company's advantageous logistics
.
The Slagen refinery closed safely in May, while Altona plans to shut down refining operations in August
.

The grassroots chemical plant project near Corpus Christi, Texas, recently completed the mechanical completion of one monoethylene glycol unit and two polyethylene units
.
The project, which will produce chemicals for medical, automotive and packaging products, is expected to start in the fourth quarter of 2021, ahead of and below budget
.

Capital allocation and structural cost improvements

Exxon's 2021 capital plan is expected to be at the lower end of the previously communicated range of $16 billion to $19 billion
.
Total capital expenditure for the first half of the year was about $7 billion
.
The company's capital allocation priorities continue to invest in strong projects, strengthen its balance sheet and pay a reliable dividend
.

In addition to reducing structural costs by $3 billion in 2020, the company also saved more than $1 billion in structural costs in the first half of 2021
.
The company will continue to work to achieve a $6 billion reduction in total structural costs by 2023 relative to 2019
.
Continued efforts to identify further structural savings resulting from the restructuring completed in 2019
.

Reduce emissions and advance low-carbon solutions

In July, the company signed a memorandum of understanding to participate in a large-scale carbon capture and storage (CCS) project in Scotland and explore the development of CO 2 infrastructure in France
.
The Acorn CCS project in Scotland plans to capture and store around 5 to 6 million tonnes of CO 2 per year by 2030
.
The collaboration with the Normandy region of France aims to develop CCS technology with the goal of reducing CO2 emissions by as much as 3 million tons per year by 2030
.

During the quarter, ExxonMobil expanded its previous agreement with Global Clean Energy to purchase up to 5 million barrels of renewable diesel, with commercial production expected to begin in 2022
.
The agreement is part of the company's efforts to advance multiple options for producing low-emission biofuels, including new projects, facility upgrades and purchase agreements
.
The company expects to produce more than 40,000 barrels per day of biofuels by 2025
.