ExxonMobil profit more than doubles as strong oil prices support earnings

Market Commentary

South African Market Summary

South African equities ended lower on Friday, with the JSE All Share declining 0.34% to 111,493.10 and the Top 40 losing 0.48% to 103,257.69. Domestic data were more constructive, as June’s trade surplus widened to R17.75 billion, substantially exceeding the R3.45 billion consensus forecast. Goldman Sachs said stronger revenue collection could support further sovereign credit-rating upgrades, with corporate tax receipts boosted by mining export profits. Company developments also remained supportive. AngloGold Ashanti reported a 36% increase in second-quarter free cash flow to $727 million, while EBITDA rose 46%. Impala Platinum recorded a marginal increase in FY2026 group 6E production to 3.50 million ounces, supported by stronger output from managed operations.

European Market Summary

European equities edged lower on Friday, with the STOXX 600 slipping 0.1% to 649.19 after briefly reaching a record high, although the index still recorded a monthly gain. Strong corporate earnings helped offset geopolitical uncertainty and concerns around artificial-intelligence valuations. Universal Music Group fell 25.4% after its first-half results, driving a 5.5% decline in the media sector. In the UK, investors continued to expect the Bank of England to slow annual quantitative-tightening reductions to £50 billion from £70 billion. Meanwhile, EY warned that prolonged disruption to Strait of Hormuz shipping could push Britain into contraction in 2027. Its baseline assumes reopening by end-September, with growth of 0.8% in 2026 and 1.2% in 2027.

US Market Summary

Wall Street closed higher on Friday as Amazon’s strong quarterly performance renewed confidence in artificial-intelligence investment and supported technology shares. Amazon surged more than 15% after reporting its fastest revenue growth in over four years, reinforcing Microsoft’s earlier evidence that data-centre spending is translating into demand. Apple fell 7.4% after warning that supply constraints could restrict growth, while recent iPhone price increases raised concerns over consumer demand. Monetary-policy expectations remained restrictive after three Federal Reserve officials who supported an immediate rate increase emphasised persistent inflation risks. The two-year Treasury yield rose 5.4 basis points to 4.28%, while futures markets assigned a 65% probability to a September rate increase, highlighting continued sensitivity to inflation data and policy commentary.

Asian Market Summary

Asian manufacturing data presented a mixed regional picture in July. China’s RatingDog manufacturing PMI declined to 50.9 from 51.7 in June, missing the 51.5 consensus estimate and signalling the slowest expansion in four months as output and new-order growth moderated. Export orders nevertheless returned to expansion, offering some support to the external-demand outlook. South Korea’s factory PMI strengthened to 53.1 from 52.1, marking an eighth consecutive month of expansion as export demand accelerated. Japan recorded the strongest manufacturing output growth in more than 12 years, accompanied by broad-based improvements across survey components. New orders rose at their fastest pace in four-and-a-half years, supported by demand linked to artificial intelligence investment.

Currency Market Summary

The South African rand weakened on Friday, despite trade data exceeding expectations, as broader global risk sentiment outweighed supportive domestic indicators. Currency markets opened the new week with the yen strengthening sharply after Japan confirmed that Tokyo and Washington had jointly purchased the currency to counter disorderly depreciation and fresh 40-year lows. Japanese authorities indicated that further intervention remained possible, keeping traders alert to additional official action. The rare bilateral operation reflects concern that sustained yen weakness and pressure on Japanese government bonds could generate wider financial-market instability, including higher US Treasury yields. Near-term foreign-exchange trading is likely to remain sensitive to intervention signals, geopolitical developments and shifting interest-rate expectations.

Commodity Market Summary

Gold advanced on Monday while oil prices declined after US President Donald Trump suspended planned military strikes against Iran, reducing the immediate geopolitical risk premium embedded in energy markets. Trump said Tehran and other Middle Eastern governments had requested additional time to pursue an agreement that would include reopening the Strait of Hormuz and addressing Iran’s nuclear programme. The prospect of improved shipping access through the strategically important waterway eased concerns over crude supply disruptions, inflationary pressures and the potential need for higher interest rates.

Domestic Company News

AngloGold Ashanti Plc (ANG) -5.39%
AngloGold Ashanti generated $727 million in second-quarter free cash flow, up 36% year on year, while EBITDA increased 46% to $2.0 billion and headline earnings rose 58% to $1.0 billion. Higher realised gold prices supported profitability despite lower production, rising royalties, inflation, fuel costs and adverse currency movements. The group ended June with net cash of $991 million following a bond repurchase, strengthening capacity for shareholder distributions and organic investment. AngloGold declared a $364 million interim dividend and secured approval for a share repurchase programme of up to $2.0 billion. Production is expected to increase and unit costs to moderate during the second half, with full-year production, cost and capital expenditure guidance reaffirmed.

Impala Platinum Holdings Limited (IMP) -2.84%
Impala Platinum delivered a solid operating performance in FY2026, with group 6E production edging higher to 3.50 million ounces from 3.48 million ounces. Managed production rose 1% to 2.75 million ounces, supported by a 4% increase at Impala Rustenburg to 1.74 million ounces and continued Styldrift ramp-up. Zimplats matte production remained stable, although furnace maintenance resulted in concentrate inventory accumulation. Marula output declined 8% as increased development activity affected grades and recoveries, while planned production reductions lowered Impala Canada volumes by 10%. Higher refined output and sales positioned the group to benefit from stronger rand PGM prices. Safety indicators improved, but four fatalities at managed operations remained a significant concern.

Primary Health Properties Plc (PHP) -0.84%
Primary Health Properties reported a 123% increase in first-half net rental income to £176 million, reflecting the enlarged portfolio, while adjusted earnings per share rose 9% to 3.8 pence. Headline earnings per share remained unchanged at 3.2 pence, although statutory earnings per share declined 14% to 3.8 pence. The interim dividend increased 3% to 3.65 pence and remained fully covered by adjusted earnings. Portfolio occupancy held at 99%, with 76% of rental income funded by government bodies and a weighted average lease term of 10.4 years. Net tangible assets edged higher to 99 pence per share, while the loan-to-value ratio remained elevated at 57%.

Primeserv Group Limited (PMV) +9.26%
Primeserv Group delivered improved profitability for the year ended March 2026, despite revenue increasing by a modest 2% to R1.10 billion. Operating profit rose 11% to R38.8 million, indicating stronger operating leverage and cost management, while earnings and headline earnings per share both advanced 12% to 47.07 cents. Net asset value per share increased 11% to 326 cents, further strengthening the group’s financial position. The board declared a final gross dividend of 21.50 cents per share, substantially above the prior year’s 12.50 cents, reflecting improved earnings and capital returns. The results suggest that Primeserv converted moderate top-line growth into stronger shareholder outcomes, supported by margin expansion and a higher dividend distribution.

Global Company News

ExxonMobil Holdings Corporation (XOM) -0.97%
ExxonMobil reported adjusted second-quarter earnings of $14.7 billion, or $3.52 per share, narrowly below market expectations despite more than doubling year on year. Higher crude prices and stronger refining margins supported the result, although total production eased to 4.5 million barrels of oil equivalent per day as disruptions reduced Qatar LNG output. Record Permian production of more than 1.8 million barrels per day partly offset the decline, while a fifth Guyana platform is expected to add 250,000 barrels per day of capacity in the fourth quarter. The group returned $9.4 billion to shareholders through dividends and buybacks, remaining on track for its $20 billion annual repurchase target, despite continued Middle East production risks. 

Chevron Corporation (CVX) +2.35%
Chevron exceeded second-quarter expectations with adjusted earnings of $12.0 billion, or $6.06 per share, supported by higher oil prices, record refining margins and resilient production. Upstream earnings tripled year on year to $8.2 billion, while downstream profit reached $4.9 billion, its strongest level since the start of the decade. Total production increased to 4.0 million barrels of oil equivalent per day, including record US output of 2.08 million boepd. Chevron also reported $1.5 billion of synergies from the Hess acquisition, achieved six months early and above target. The group returned $6.5 billion through dividends and buybacks, retained its $10 billion to $20 billion full-year repurchase range and prioritised longer-term balance-sheet strength.

AbbVie (ABBV) -2.51%
AbbVie exceeded second-quarter expectations as strong immunology demand offset continued erosion in Humira sales. Adjusted earnings reached $3.65 per share on revenue of $16.99 billion, ahead of consensus forecasts of $3.60 and $16.77 billion, respectively. Skyrizi sales increased 24.4% to $5.51 billion, while Rinvoq revenue rose 24.5% to $2.53 billion. Humira sales declined 36% to $756 million as biosimilar competition persisted. AbbVie raised its full-year revenue outlook to $67.6 billion but trimmed adjusted earnings guidance to $13.87–$14.07 per share, reflecting the planned $10.9 billion acquisition of Apogee Therapeutics. The transaction is intended to strengthen its inflammatory-disease pipeline. Third-quarter adjusted earnings are expected at $3.84–$3.88 per share.

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