ExxonMobil's Downstream Earnings Flat

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ExxonMobil's Downstream Earnings Flat

07/26/2012

IRVING, Texas -- ExxonMobil Corp.'s U.S. downstream division, parent of its convenience stores, earned $1.437 billion in its 2012 fiscal second quarter, virtually flat compared to the same quarter in 2011.

Global downstream earnings rose considerably, however. Globally, ExxonMobil earned $8.232 billion in downstream net profit its latest quarter, an increase of $5.777 billion vs. 2011's second quarter. The world's largest oil company cited a restructuring in Japan for much of that gain.

As for the entire company, ExxonMobil's net profit rocketed higher, by 49 percent -- to $15.91 billion -- in its latest quarter.

Asset sales were the main reason for the profit increase, the company said during today's earnings conference call. If removing the one-time asset sales, though, ExxonMobil earned just $8.4 billion in total net profit for its 2012 second quarter, which would be a 22-percent earnings decline compared to the same timeframe last year.

The $8.4-billion profit was lower than Wall Street analysts forecasted.

"We continue to be in a good position to do well for our shareholders," said David Rosenthal, ExxonMobil's vice president of investor relations.

Rosenthal added that in the near term, the company is looking at several possibilities for its liquefied natural gas (LNG) assets. "We're studying the possibility of LNG exports [from] the U.S. and Canada," he said.