Exxon Mobil Corp (XOM.N) has reported a significant decline in second-quarter operating profits due to lower natural gas prices and weaker oil refining margins, as stated in a regulatory filing.

Compared to the previous year’s earnings of $17.85 billion, operating profits plummeted to approximately $7.8 billion. The surge in oil and gas prices following Russia’s invasion of Ukraine had boosted global energy results to record levels at that time.

The price of U.S. natural gas futures reached its lowest level in two years, trading at $2.657 per million British thermal units, primarily due to reduced consumption levels in Europe.

Exxon’s second-quarter outlook fell short of its record first-quarter profit of $11.4 billion, as estimated by various business units.

According to Refinitiv, Wall Street analysts expect a per-share profit of $2.27 for the quarter ending on June 30. The company’s stock closed at $106.91 per share, maintaining a relatively flat performance year to date.

The tally shows that results from Exxon’s oil and gas extraction, which is its largest and most profitable business, declined by approximately $2.2 billion compared to the $6.5 billion delivered in the first quarter. Lower natural gas prices accounted for a $2 billion reduction in operating profit, according to the filing.

Exxon also cited weaker refining margins, which further decreased operating results in its gasoline and diesel business by an additional $2.1 billion, as a factor influencing second-quarter earnings.

On a positive note, the chemicals business performed well during the quarter, with operating earnings indicating profits of $800 million, twice the level seen in the first quarter.

Official results for the second quarter are expected to be released on July 28.


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