ExxonMobil(US:XOM) Haitong Securities International·2025-08-18 05:19Investment Rating - The report maintains a positive outlook on ExxonMobil, indicating a favorable investment rating based on strong performance in upstream operations [1][2]. Core Insights - ExxonMobil reported adjusted net income of $7.082 billion for Q2 2025, slightly below consensus expectations of $7.082 billion, driven by robust performance in upstream operations [1][2]. - The company reaffirmed its capital expenditure guidance for FY 2025 in the range of $27-29 billion and confirmed a quarterly dividend of $0.99 per share, consistent with Q1 2025 [1]. - ExxonMobil also confirmed a $20 billion stock buyback plan to be maintained through 2026 [1]. Summary by Relevant Sections Upstream Business Performance - The upstream segment achieved adjusted net income of $5.402 billion, exceeding consensus expectations of $4.764 billion, supported by increased production from the Permian Basin and Guyana projects, structural cost savings, favorable exchange rates, and tax impacts, partially offset by price declines [2][4]. - Oil and gas production reached 4.63 million barrels of oil equivalent per day, reflecting a 13% year-over-year increase in H1 2025 [2]. Energy Products - The energy products segment reported adjusted net income of $1.365 billion, surpassing consensus expectations of $1.265 billion, as cost savings and planned maintenance mitigated the impact of declining refining margins [2][4]. Chemical Products - The chemical segment's adjusted net income was $293 million, falling short of consensus expectations of $427 million, primarily due to narrowing margins and increased spending related to projects in China, although partially offset by structural cost savings [2][4]. Specialty Products - The specialty products segment reported adjusted net income of $780 million, exceeding expectations of $728 million, as margin improvements and cost savings offset increased expenses [2][4].