Date: 3rd August 2019
Exxon Mobil Corp said in a statement on Friday that the profits for the quarter were 21 percent lower as compared to that of last year during the same period. The oil giant has reported third such profit figure in a row that is lower than its last year’s records.
The lower profits are mostly due to the dampening refining and chemicals business, even when oil production rose sharply. After the announcement of profits for the quarter, the Exxon share dropped to $71.34, down by 1.6 percent.
The company, however, did transcend the expectations of analysts with its profits of 73 cents per share. The analysts had decreased their estimate to 66 cents per share as the company predicted weaker profits in the coming years last month.
Even the rivals of Exxon suffer from the same situation. These include Equinor, Total SA and Royal Dutch Shell. Due to a steep decline in natural gas prices and lower margins in the chemicals business, Shell reported the lowest profit figure in over two years. Due to similar reasons, Total’s earnings dropped by 19 percent as compared to that of a year ago.
While the profit figures for the quarter of Exxon were not impressive, its oil production was up by 7 percent, reaching 3.9 million barrels per day.
Exxon senior vice president, Neil Chapman said in a statement that three business divisions were in recession in the quarter. The net income in the second quarter of the oil giant was $3.13 billion, down from $3.95 billion of a year ago. Earnings per share dropped from 92 cents to 73 cents.
The oil giant is also planning asset sales so as to focus on more profitable business divisions. However, analysts claim that the company has not progressed much in that aim. Chapman reiterated that the company plans to sell assets worth $15 billion by 2021.