Dallas: ExxonMobil Corporation posted its worst third quarter in 12 years due to low oil prices but still earned $4.24 billion, beating Wall Street expectations.
Exxon’s earnings from exploration and production continued to slide, especially in the US. However, profit doubled in the refining end of its business on stronger margins, and the chemicals segment was steady.
Exxon Mobil is dealing with oil prices that have dropped by half since June 2014 and have remained lower for longer than most industry experts expected. With production outstripped modest demand growth, it’s unclear when prices will start rising.
Chief executive Rex Tillerson pledged a “relentless focus” on controlling costs. The company slashed capital and exploration spending by about one-fifth from a year ago, but it spent more on shareholder dividends.
“Quarterly results reflect the continued strength of our downstream and chemical businesses and underscore the benefits of our integrated business model,” Tillerson said.
The oil giant reported yesterday that third-quarter profit slid 47.5 per cent from the same period last year and was the smallest third-quarter gain since 2003, when oil prices were around $30 a barrel.
The earnings worked out to $1.10 per share. That beat the average estimates of analysts surveyed by Zacks Investment Research and FactSet, who predicted 89 cents per share.
Revenue dropped 37pc to $67.34bn. The FactSet analysts had expected $61.71bn.
Exxon’s profit from exploration and production dropped from $6.5bn to $1.4bn, including a loss of $442 million in the US. Production rose due to new projects in the US, Canada and elsewhere.
So-called downstream earnings from refining and selling petroleum products jumped from $1bn to $2bn on higher refining margins.
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