Exxon Mobil Corp, the world's largest public oil company, on Thursday reported quarterly profit surged 35 percent to top $10 billion, driven by yet another quarter of sharply higher oil prices.
In a surprise move, the 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 ramp up its already hefty stock buyback program to $7 billion in the third quarter. Helped by 6 percent growth in oil and gas production and better refining margins, the company's profit easily beat Wall Street expectations, and the market appeared to shrug off the weaker-than-expected revenues.
"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. That was above the average forecast by analysts of $1.64 a share, according to Reuters Estimates.
Exxon shares were up 90 cents, or 1.4 percent, at $67.47 in pre-market trading.
Credit Suisse analyst Mark Flannery said in a research note the company was able to trump expectations because of the strong performance at its exploration and production unit, helped by solid output growth.
Revenue jumped 12 percent to $99.03 billion, from $88.57 billion a year earlier. That was below analysts' average forecast of $104.26 billion, according to Reuters Estimates. 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.