Earnings excluding special items for the second quarter of 2008 were a record $11.97 billion, an increase of 17% or $1.71 billion from the second quarter of 2007. Earnings per share excluding special items were up 24% to $2.27, reflecting strong earnings and the continued reduction in the number of shares outstanding, the company said.
For the first half of 2008, net income was $22.57 billion, or $4.25 per share, an increase of $3.03 billion over the first half of 2007. Excluding special items, earnings for the first half of 2008 were $22.86 billion, an increase of $3.32 billion from 2007.
Upstream earnings were $10.01 billion for the second quarter of 2008, up $4.05 billion from the second quarter of 2007. Record crude oil and natural gas realizations increased earnings approximately $6.1 billion. Lower sales volumes decreased earnings about $1.7 billion. Higher operating costs and increased taxes also reduced earnings.
Downstream earnings of $1.56 billion for the second quarter of 2008 were down $1.83 billion compared to the second quarter of 2007 as lower margins reduced earnings by $1.9 billion, driven by significantly lower worldwide refining margins.
Upstream earnings for the first half of 2008 were a record $18.79 billion, up $6.8 billion from 2007. Record high crude oil and natural gas realizations increased earnings by approximately $10.5 billion, while lower sales volumes reduced earnings by about $2.5 billion, the company said. Higher taxes, increased operating costs and lower gains on asset sales decreased earnings by approximately $1.2 billion.
Rex Tillerson, chairman and CEO of ExxonMobil, said: ExxonMobil increased investments across all business lines to help meet global demand for crude oil, natural gas and finished products. Capital and exploration project spending increased to $7 billion in the second quarter, up 38% from last year. For the first half of 2008, spending on capital and exploration projects was $12.5 billion.
