Exxon Mobil 1Q profit falls 58 percent
HOUSTON — Exxon Mobil Corp. said Thursday first-quarter earnings fell 58 percent from a year ago, its lowest profit in more than five years, as the world’s biggest publicly traded oil company saw crude and gas prices fall precipitously.
The quarterly profit also fell short of Wall Street expectations and company shares fell 3 percent.
Exxon Mobil, based in Irving, Texas, said earnings for the first three months of the year came to $4.6 billion, or 92 cents a share, down from $10.9 billion, or $2.02 a share, a year ago. On average, analysts polled by Thomson Reuters were looking for net income of 95 cents a share.
The last time Exxon had lower earnings was the third quarter of 2003, when its net income was $3.65 billion.
Revenue tumbled 45 percent to $64 billion from $116.9 billion a year ago. Analysts, on average, had forecast revenue of about $54 billion.
Yet even as many producers postpone or even cancel some oil and gas projects, Exxon increased capital spending in the first quarter by 5 percent from a year ago, evidence of its strong balance sheet. Exxon has said its capital spending this year is expected to reach $29 billion, up from $26.1 billion in 2008.
“In spite of the dramatic changes to the global economic environment, Exxon Mobil is maintaining its long-term focus and disciplined approach to capital investment,” Rex Tillerson, the company’s chairman and chief executive, said in a statement.
Exxon also spent $7.9 billion buying back its own shares during the quarter.
The profit falloff was no surprise given the steep drop in oil and natural gas prices from a year ago. This time last year crude was in the triple digits, in the midst of a historic ride to almost $150 a barrel. But prices spent the rest of the year retreating and have hovered around $50 a barrel since March.
Still, anytime Exxon Mobil reports such a big profit decline, it’s likely to prompt a double-take. Just three months ago, it posted a $45.2 billion profit for all of 2008, breaking its own earnings record for a U.S. company.
The oil giant, which replaced Wal-Mart atop the 2009 Fortune 500 list of largest U.S. companies, has made a habit of setting quarterly and annual profit marks in the past few years amid rising commodity prices.
It’s a different story these days.
Exxon, which pumps 3 percent of the world’s oil, said earnings at its exploration and production, or upstream, business fell 60 percent to $3.5 billion. The company said lower crude prices reduced earnings by about $4.4 billion, while falling natural gas prices lowered results by about $500 million.
Overall production was roughly flat from a year ago.
On the refining and marketing side, earnings were down about 8 percent from a year ago to $1.1 billion. The company said it was hurt in part by lower volumes and higher operating expenses, although margins improved.
Exxon wasn’t alone reporting sharply lower year-over-year profits among major oil companies. The numbers were even uglier for ConocoPhillips (down 80 percent) and Europe’s BP PLC and Royal Dutch Shell PLC (both down 62 percent.) Chevron Corp., the No. 2 U.S. oil company behind Exxon, is scheduled to report earnings Friday.
Also Thursday, Marathon Oil Corp., the fourth-largest U.S. integrated oil company, said its profits for the first three months of 2009 fell 61 percent.
Exxon shares fell $2.17 to $66.27 on Thursday.
Related News
A brief history of the Exxon Mobil sabotage caseAugust 28th, 2009 A brief history of the Exxon Mobil sabotage caseA quick look at the history of the case in which Exxon Mobil Corp. is accused of sabotaging wells it has abandoned.
Shares of major oil companies tumble as crude prices decline with slumping consumer demandAugust 17th, 2009 Shares of oil majors tumble with crude pricesNEW YORK — Shares of major oil companies fell sharply on Monday, as crude oil prices tumbled amid new reports that signaled continued consumer spending restraint. Benchmark crude for September delivery at one point fell as much as 3 percent to $65.23 a barrel on the New York Mercantile Exchange.
Norway's StatoilHydro posts zero profit in 2Q, cites lower crude and gas pricesAugust 4th, 2009 Norway's StatoilHydro 2Q profit falls to zeroOSLO — Norwegian oil company StatoilHydro ASA on Tuesday saw its profits vanish in the second quarter and cited lower crude and gas prices. The state-controlled oil concern said its net profit for April through June period plummeted to zero kroner from 18.9 billion kroner ($3.1 billion) in the same time last year, when oil prices soared.
Volatility in energy markets sends crude prices surging 5 percent; prices top $66July 30th, 2009 Oil surges above $66 a barrel in volatile weekNEW YORK — Oil prices surged above $66 a barrel Thursday, rising in lockstep with major global indexes in what has become a very volatile week for energy markets. With regulators meeting in Washington to consider new limits on speculators that some blame for wild swings in oil and gas prices, crude fell 6 percent Wednesday only to rebound by almost that much Thursday.
Exxon Mobil 2Q profit down 66 percent as lower crude, gas prices cut into earningsJuly 30th, 2009 Exxon Mobil 2Q profit falls a surprising 66 pctExxon Mobil Corp. on Thursday reported its lowest profit in nearly six years, a 66 percent plunge from the second quarter a year ago as the world's biggest publicly traded oil company confronted sharply lower crude and gas prices and anemic demand for refined products.
Volatility in energy markets sends crude prices surging more than 5 percent; prices near $67July 30th, 2009 Oil surges above $67 a barrel in volatile weekNEW YORK — Oil prices surged above $66 a barrel Thursday, rising in lockstep with major global indexes in what has become a very volatile week for energy markets. With regulators meeting in Washington to consider new limits on speculators that some blame for wild swings in oil and gas prices, crude fell 6 percent Wednesday only to rebound by almost that much Thursday.
With crude prices down, oil and gas companies expected to post far lower profitsJuly 14th, 2009 Oil industry profits expected to fall sharplyHOUSTON — Big Oil is set for another big flop. For the second straight quarter, Exxon Mobil, Royal Dutch Shell and most of the world's largest oil companies are poised to report quarterly earnings that pale in comparison to a year ago, when results were buoyed by crude prices that topped out near $150 a barrel.
Federal court orders Exxon Mobil to pay $507.5 million, plus interest, for 1989 oil spillJune 15th, 2009 Exxon ordered to pay $507.5M for 1989 Alaska spillSAN FRANCISCO — Exxon Mobil Corp. has been ordered to pay $507.5 million in punitive damages to Alaska natives, fishermen, business owners and others harmed by the massive 1989 oil spill off Alaska.
Exxon Mobil profit falls 58 percent as lower crude, gas prices cut into earningsApril 30th, 2009 Exxon Mobil profits fall 58 percent to $4.6BHOUSTON — Exxon Mobil says its first-quarter profit fell 58 percent as the world's biggest publicly traded oil company, like smaller rivals, encountered far lower year-over-year oil and gas prices. Exxon Mobil Corp., based in Irving, Texas, said Thursday that earnings for the first three months of the year came to $4.6 billion, or 92 cents a share, down from $10.9 billion, or $2.02 a share, a year ago.
Kellogg, Kodak, MGM Mirage, Exxon Mobil, Dow Chemical are big market movers ThursdayApril 30th, 2009 Kellogg, Kodak, MGM Mirage, Exxon Mobil big moversNEW YORK — Stocks that moved substantially or traded heavily Thursday on the New York Stock Exchange and Nasdaq Stock Market:
NYSE
Kellogg Co., up $2.61 at $42.11
The world's largest cereal maker said its first-quarter profit increased on cost cutting measures and beat analyst estimates. Eastman Kodak Co., down 59 cents at $3.05
The photography pioneer said its loss tripled to $353 million in the first quarter as the economic downturn diluted demand.
Marathon Oil says first-quarter profit falls 61 percent on lower oil, gas pricesApril 30th, 2009 Marathon 1Q profit falls 61 percentHOUSTON — Marathon Oil Corp. said Thursday its first-quarter profit fell 61 percent from a year ago as the company, like many competitors, saw results dive along with oil and natural gas prices.
Exxon Mobil 1Q profit down 58 percent as lower crude, gas prices cut into earningsApril 30th, 2009 Exxon Mobil 1Q profit fall 58 percentHOUSTON — Exxon Mobil says its first-quarter profit fell 58 percent as the world's biggest publicly traded oil company, like smaller rivals, encountered far lower year-over-year oil and gas prices. Exxon Mobil Corp., based in Irving, Texas, said Thursday that earnings for the first three months of the year came to $4.6 billion, or 92 cents a share, down from $10.9 billion, or $2.02 a share, a year ago.
Dismal beginning in the oil patch this year; Exxon Mobil takes out the walletApril 30th, 2009 Dismal start in the oil patch; Exxon still spendsHOUSTON — The oil industry is off to a dismal start this year, with Exxon Mobil and Marathon Oil on Thursday becoming the latest majors to report first-quarter profits plunging by half and more. Only last year, as crude prices soared well into the triple-digits, Exxon in particular was setting itself apart by shattering corporate profit records.
Chinese refiner Sinopec says 1Q net profit up 85 pct on higher fuel prices, lower crude costsApril 28th, 2009 Chinese refiner Sinopec: 1Q net profit up 85 pctSHANGHAI — China Petroleum & Chemical Corp., Asia's largest refiner by capacity, said Tuesday that its net profit rose 85 percent in the first quarter, helped by rising prices for oil products and lower crude oil costs. The company, also known as Sinopec, reported a net profit of 11.2 billion yuan ($1.6 billion) in January-March, up from 6.06 billion yuan in the first quarter of 2008.
PetroChina says 1Q profit dives 35.3 percent on low oil prices, weak customer demandApril 28th, 2009 PetroChina 1Q profit dives 35.3 percentBEIJING — PetroChina Ltd., China's biggest oil company, said Tuesday its profit dived 35.3 percent in the first quarter on low oil prices and weak demand as it headed into what it warned earlier would be a difficult year. Profit for the quarter ending March 31 was 18.9 billion yuan ($2.8 billion) or 0.10 yuan per share, compared with 29.3 billion yuan or 0.16 yuan per share in the same period of 2008, the Beijing-based company announced.
Loading ...