Exxon Mobil (XOM) Q2 2013 earnings summary

Executive summary

• Q2 net income was $6.860B, down 57% YoY; excluding prior-year divestment and tax-related gains, earnings declined 19%.

• Adjusted oil-equivalent production was essentially flat YoY, while weaker refining margins and planned maintenance pressured Downstream results.

Financial highlights

• Revenue and other income were $106.469B versus $127.363B YoY; diluted EPS was $1.55 versus $3.41.

• Q2 cash flow from operations and asset sales was $8.0B, including $0.3B from asset sales and a ~$5B unfavorable working-capital impact.

• H1 net income was $16.360B, down 35%; diluted EPS was $3.67, down 32%.

Outlook and guidance

• 2013 volume and CapEx outlooks remained unchanged from the March analyst meeting; H1 volume performance was in line with projections.

• Capital and exploration spending was $10.244B in Q2 and $22.019B in H1, in line with plans; annual investment was expected to be ~$38B for the next several years.

• Q3 share purchases were anticipated at $3B; near-term financial requirements were expected to be funded predominantly with internally generated cash.

• Corporate and financing expense guidance remained $500M–$700M per quarter.