Exxon Mobil Profit Rises To Record Level In 2Q, Up By 14%

New York, NY (AHN) - Exxon Mobil Corp. reported on Thursday that its second quarter net income increased by 14 percent led by higher oil prices during the period.

The decline in production of crude by 7.8 percent and weak refining earnings didn't offset the overall profit made by the company.

Exxon Mobil said early Thursday morning that it posted largest quarterly profit of $11.68 billion or $2.22 a share on revenue of $138 billion in the second quarter.

The company had reported $10.26 billion, or $1.83 a share, a year earlier and broke its own record of $11.66 billion earned in the fourth quarter of last year.

The U.S. oil giant, however, failed to report more than projected earnings by the market analysts.

"Capital and exploration project spending increased to $7.0 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," Chief Executive Officer Rex Tillerson said in a statement.

The 56-year-old added that the company distributed a total of $10.1 billion to shareholders in the second quarter through dividends of $2.1 billion and share purchases to reduce shares outstanding of $8.0 billion, an increase of 12% or $1.1 billion versus the second quarter of 2007.

A light sweet crude barrel for August delivery moved above $140-a-barrel mark in electronic trading during the second quarter ending June.

The company reported its capital and exploration expenditures were $7.0 billion, up 38 percent from the second quarter of 2007, while cash flow from operations and asset sales was approximately $14.6 billion, including asset sales of $1.2 billion.

Shares of the Irving, Texas-based company, Exxon Mobil, declined by 2.9 percent or $2.49 to 81.89 at 12:58 p.m in New York composite trading on Thursday.