Business

Exxon Mobil profits drop 49 percent as oil and gas prices drop

Published

November 1, 2019

The oil giant reported $3.17 billion in profits in the third quarter Friday, down from $6.2 billion in the same period a year ago – with total revenue of $65.05 billion, down 15 percent from the same time last year, reports the Associated Press.

Here’s a breakdown of how the energy giant’s results fared relative to Wall Street expectations: *Adjusted earnings: 75 cents per share vs. 67 cents expected by Refinitiv
*Revenue: $65.05 billion vs. $64.79 billion expected by Refinitiv
*Upstream income: $2.17 billion vs. $2.36 billion expected from FactSet estimates
*Downstream income: $1.23 billion vs. $1 billion expected from FactSet estimates
*Chemicals income: $241 million vs. $223.6 million expected from FactSet estimates
“Maybe expectations were a little bit weak going in, but I think overall it is probably slightly negative relative to expectation,” said Anish Kapadia, director of energy at London-based Palissy Advisors, according to Reuters.

“We are making excellent progress on our long-term growth strategy,” Exxon Chairman and CEO Darren Woods said. “Growth in the Permian continues to drive increased liquids production and we are ahead of schedule for first oil in Guyana. The value of our position in Guyana improved further this quarter with additional discovery, our fourth this year. We are also making good progress on our advantaged investments in the Downstream and Chemical,” he added.

Chevron argues that a huge environmental damages ruling against it in Ecuador stems from a bribe paid to a judge

ERIC PIERMONT, AFP/File

Across the board Q3 earnings drop
Exxon Mobil is not the only major energy company feeling the pinch from falling oil and shale gas prices. Both BP and Royal Dutch Shell indicated earlier this week they might delay dividend increases or a buyback program because of low prices.

California-based Chevron also saw its profits drop on Tuesday. The company reported earning $2.58 billion in the third quarter, down 36 percent from the same time last year, while revenue was down 18 percent to $36.12 billion.

“Third-quarter earnings and cash flow were solid, but down from our very strong results of a year ago,” said Michael Wirth, Chevron’s CEO, in a news release. “Lower crude oil and natural gas prices more than offset a 3 percent increase in net oil-equivalent production from last year’s third quarter.”

In this article:3rd quarter, Exxon mobil, longterm growth, oil and gas prices, profits

Written By Karen Graham

We are deeply saddened to announce the passing of our dear friend Karen Graham, who served as Editor-at-Large at Digital Journal. She was 78 years old. Karen's view of what is happening in our world was colored by her love of history and how the past influences events taking place today. Her belief in humankind's part in the care of the planet and our environment has led her to focus on the need for action in dealing with climate change. It was said by Geoffrey C. Ward, "Journalism is merely history's first draft." Everyone who writes about what is happening today is indeed, writing a small part of our history.