Exxon Mobil profits dive on oil slump
OIL SUPERMAJOR Exxon Mobil slashed its spending outlook for the year yesterday as it reported a 68 per cent slump in third-quarter earnings on the back of a poor trading environment.
The world’s biggest oil company said its profits fell to $4.73bn (£2.9bn), down from $14.83bn a year ago, as oil prices fell and its refining business struggled in the downturn.
Exxon added it expected to spend around $26bn in 2009, flat with 2008, but a cut of $3bn from its original forecast earlier this year.
Revenues at the company fell 40.3 per cent to $82.3bn, missing analysts expectations by around $3bn.
And quarterly earnings in Exxon’s refining and marketing arm were down around 90 per cent year-on-year.
Oil and gas output in the quarter went up by three per cent, boosted by several major liquefied natural gas projects in Qatar starting up, Exxon said.
“We are well-positioned for continued production growth with projects such as QatarGas, RasGas and Gorgon LNG which will contribute additional long-plateau production for decades and provide Exxon Mobil with a strong foundation,” Rex Tillerson, Exxon’s chief executive said.
Earnings from the company’s exploration and production arm fell 63 per cent to $4bn.
Slumping oil prices have hit energy groups’ earnings worldwide. Italian group Eni said yesterday its earnings had fallen by 58 per cent, and London-listed oil giants Shell and BP have both reported massive declines this week. The second-largest oil company in the US, Chevron, is due to report today.