IRVING, Texas — A jump in Exxon Mobil’s net income couldn’t mask broader problems for America’s largest oil company.
The petroleum giant said its second-quarter net income rose 49 percent to $15.9 billion. But most of the gain came from $7.5 billion in asset sales.
Otherwise, it was a challenging quarter. Exxon produced less oil and natural gas, and it sold both at lower prices. Exxon’s chemical factories also posted weak sales in Asia and Europe, where the economy slowed. All told, Exxon’s operating profit of $8.4 billion was the lowest since the third quarter of 2010, and it fell well short of Wall Street expectations.
The fortunes of Exxon and other petroleum companies mostly swing with the price of oil and natural gas. And the second quarter was tough for every one of them. Benchmark U.S. crude prices fell 8.8 percent in the period, while natural gas prices dropped by 46.2 percent.
Declining prices also lowered second-quarter profits at Royal Dutch Shell, Occidental Petroleum and ConocoPhillips. Chevron will release its financial results Friday, and BP will report next week.
Exxon said it will press ahead with its aggressive plan to explore for more oil and gas, even though prices are falling.
