Energy giant Exxon Mobil (XOM) has reported a 56% decline in its second-quarter profit due to a drop in crude oil prices.
The earnings of all the energy majors have declined as oil prices retreat from a peak of $122 U.S. a barrel achieved in June 2022 following Russia's invasion of Ukraine.
Brent crude oil, the international standard, is currently trading at $83 U.S. a barrel.
Exxon Mobil said its Q2 net income, or profit, amounted to $7.88 billion U.S., or $1.94 U.S. per share, compared to a record $17.85 billion U.S. profit reported a year earlier.
Revenue was also lower in the quarter, falling 27% from a year earlier to $80.80 billion U.S.
However, apart from last year's record second quarter, Exxon Mobil posted its strongest earnings for the April through June period in more than a decade, aided by cost cuts.
The company said it has achieved structural cost savings of $8.3 billion U.S. from 2019 levels, nearing its $9 billion U.S. cost-cutting target.
Exxon Mobil's oil production currently stands at 3.7 million barrels of oil equivalent per day (boed), in line with the company's annual target. The U.S. Permian Basin delivered 622,000 boed in Q2.
The company distributed $8 billion U.S. in cash to shareholders in Q2, including $3.7 billion U.S. of dividend payments.
Exxon Mobil’s stock has increased 14% over the past 12 months to trade at $105.42 U.S. per share.
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