By Chelsey Dulaney
Exxon Mobil Corp., the biggest and richest U.S. oil company,
reported a 52% drop in profit for its second quarter, even as lower
crude prices drove its refining earnings higher.
Exxon's profit has been helped its downstream and chemicals
divisions, which are being helped by low prices for oil and gas. In
the first quarter, the segments reaped nearly as much profit as it
made from pumping oil and gas--which traditionally generates the
most profit.
In the latest quarter, refining and marketing earnings grew $795
million to $1.5 billion.
Profit in the exploration and production business fell to $2
billion from $7.9 billion a year earlier.
The chemical segment earnings improved $405 million to $1.2
billion.
Exxon noted that "higher downstream and chemical earnings were
more than offset by the impact of weaker upstream realizations and
lower asset management gains." Downstream operations refine oil
into gasoline and other products, while upstream represents the
company's exploration and production business.
In all, Exxon reported a profit of $4.19 billion, or $1 a share,
down from $8.78 billion, or $2.05 a share, a year earlier. Revenue
fell 33% to $74.11 billion.
Analysts polled by Thomson Reuters expected a per-share profit
of $1.11 and revenue of $72.48 billion.
Capital spending fell to $8.26 billion from $9.8 billion a year
earlier.
Exxon has moved to conserve cash in a sign that it doesn't
expect a quick rebound in crude prices. The company has announced
it would slash its capital spending by this year and reduce its
stock buybacks in the near term.
Shares of Exxon Mobil, down 16% over the past year, fell 1.8% to
$81.50 in premarket trading.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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