Dallas, Texas 08/01/2014 (FINANCIALSTRENDS) – Exxon Mobil Corporation (NYSE:XOM) has reported its second quarter earnings for 2014 fiscal. The Texas-based, oil manufacturer and marketer, reported earnings of $8.8 Billion at $2.05 per share. The earnings for the same quarter in fiscal 2013 was $1.9 billion lesser in comparison, showing gains in asset sales, besides substantial gains in other business segment operations as well.
However, some concerns and red flag performance remain.
Exxon Sequential Quarter Earnings Decline
While presenting the results, Exxon Vice President of Investor Relations and Secretary, David S. Rosenthal noted that, In the sequential quarter comparison, earnings decreased by $320 million, as lower Downstream and Chemical earnings and higher corporate and financing expenses were partly offset by higher Upstream earnings. Guidance for corporate and financing expenses remains at $500 million to $700 million a quarter.”
For investors however, the highlight of the second quarter report for the largest public oil company in the US, were the 28% increase in earnings.
28% Rise In Earnings Sets Positive Sentiment
Exxon Mobil Corporation (NYSE:XOM) CEO Rex Tillerson noted that the financial results were strong for the quarter reported because of operational performance as well as portfolio management strengths. He reiterated that, “We continue to enhance shareholder value by funding capital projects and delivering robust shareholder returns through dividends and share purchases.” The earnings were substantiated by lowering the expenditure incurred in explorations for the first half of 2014, which were lesser by 17% at $18.2 billion for the H12013.
Exxon Mobil Corporation (NYSE:XOM) has reported fall in production of oil by 5.7 % in the second quarter following the termination of the lease of some of its Abu Dhabi-based onshore concessions.
Additionally, Exxon has distributed roughly $11.7 billion to shareholders in the form of dividends, as well as share purchases, thereby lowering the shares outstanding. Exxon is currently focused on global expansion and is at various developmental stages on multiple projects.