Exxon Mobil quarterly profits top $10bn

Exxon Mobil today reported that quarterly profit has surged 35 per cent to over $10 billion amid yet another quarter of sharply…

Exxon Mobil today reported that quarterly profit has surged 35 per cent to over $10 billion amid yet another quarter of sharply higher oil prices.

In a surprise move, the world's largest public oil company boosted its capital spending forecast for the year to $20 billion, citing additional exploration and production opportunities.

The world's largest company by market capitalisation also said it would increase its already hefty stock buyback programme to $7 billion in the third quarter.

Helped by 6 per cent growth in oil and gas production and better refining margins, the company's profit between April and June easily beat Wall Street expectations, and the market appeared to shrug off the weaker-than-expected revenues.

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"It's a $10 billion quarter. How can you argue with that?" said Lysle Brinker, analyst with energy research firm John S. Herold. "It's pretty amazing."

Net income in the second quarter was $10.36 billion, or $1.72 a share, compared to $7.64 billion, or $1.20 a share, in the year earlier quarter. Exxon shares were up 90 cents, or 1.4 per cent, at $67.47 in pre-market trading.

Revenue jumped 12 per cent to $99.03 billion, from $88.57 billion a year earlier.

Exxon, like its peers, is enjoying another in a string of bumper quarters as crude oil prices hover at historically high levels. Oil prices hit a record high of $78.40 a barrel about two weeks ago, driven by anxiety over supplies from the Middle East.

The company's latest results are sure to reignite calls for windfall profit taxes on major oil companies, who have come under attack over the past year for posting record profits as consumers struggle with soaring gasoline prices.