Exxon Mobil Profit, Revenue Slide Again
October 28 2016 - 8:50AM
Dow Jones News
By Anne Steele
Exxon Mobil Corp. on Friday posted a 38% decline in quarterly
profit as revenue slid more than expected amid the prolonged swoon
in oil prices.
Shares edged 1.1% lower premarket to $85.95 as the oil giant
reported its eighth straight quarter of year-over-year profit
declines and its ninth straight quarter of falling revenue.
Chief Executive Rex Tillerson said the operating environment
"remains challenging."
For the September quarter, Exxon, the largest U.S. oil company,
reported earnings fell to $2.65 billion, or 63 cents a share, from
$4.24 billion, or $1.01 a share, a year earlier. Analysts polled by
Thomson Reuters were looking for 58 cents a share.
Revenue slipped 13% to $58.68 billion, below analysts' forecast
for $63.85 billion.
Profit in the exploration and production, or upstream, business
fell 16% to $620 million. In the U.S., the upstream division
widened its loss to $477 million from $442 million a year
earlier.
Exxon also was hurt by declining profit in the downstream
division, which had previously been a boon amid lower prices for
oil and gas. In the latest quarter, refining and marketing, or
downstream, earnings were $1.2 billion, $804 million lower than in
the year-earlier period. Exxon said weaker margins, mostly in
refining, weighed on earnings by $1.6 billion while volume and mix
effects lifted earnings by $170 million.
Exxon slashed its capital and explorations spending 45% from a
year ago to $4.19 billion.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
October 28, 2016 08:35 ET (12:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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