(MENAFN- Gulf Times) ExxonMobil yesterday reported a fall in quarterly earnings, weighed down by the big drop in oil prices as well as lower petroleum output and weak US refining.
The biggest US oil company said fourth-quarter net income was $6.6bn, down 21.3% from the year-ago period.
Drivers of the decline included a 19.4% slide in exploration and production profits due to lower oil prices and a 3.8% drop in oil and gas production.
Exxon also reported a $1mn loss in US downstream earnings, citing poor refining margins in the region.
The weak areas were offset somewhat by a rise in non-US refining profits and higher global chemical profits. Those divisions had lower costs due to the fall in oil prices.
The Exxon earnings came as oil companies such as Chevron and ConocoPhillips cut drilling budgets due to a steep decline in oil prices that has pressured earnings. Oil prices have fallen about 60% since June.
"ExxonMobil's results illustrate the value of our proven business model that integrates upstream, downstream, and chemical businesses," said Exxon chief executive Rex Tillerson.
"Our balanced portfolio uniquely positions ExxonMobil to deliver superior results throughout the commodity price cycle."
Exxon announced no capital spending cuts yesterday. The company is expected to update the market on its plans at a March 4 analyst meeting.
Exxon's earnings translated into $1.56 per share, above the $1.34 projected by Wall Street analysts.
Revenues dropped more than 20% compared with last year to $87.3bn, demonstrating the impact from lower crude prices on oil pumped from the ground.
However, costs also fell 18.4% to $78.4bn, reflecting the benefit of lower crude oil costs to refining.
Exxon's annual profits were $32.5bn, down 0.2% from 2013.
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