Exxon Mobil’s first-quarter profit misses estimates on lower oil, gas prices

Exxon Mobil’s first-quarter profit misses estimates on lower oil, gas prices

FILE PHOTO: Gas flares from an ExxonMobil oil refinery in Singapore, February 26, 2019. REUTERS/Edgar Su

(Reuters) – Exxon Mobil Corp reported on Friday a 49 percent fall in first-quarter profit on lower oil and gas prices and weakness across its businesses that offset modest production gains, it said on Friday.

The largest U.S. oil producer’s profits were down across its major operations, including chemicals and oil and gas production, and fell to a loss in its refining business due to higher maintenance costs and lower margins on sales.

First-quarter profit fell to $2.35 billion, or 55 cents a share, from $4.65 billion, or $1.09 a share, a year ago.

Irving, Texas-based Exxon also took a $115 million impairment charge in its U.S. oil and gas operations.

Analysts had expected Exxon to earn 70 cents per share, according to Refinitiv Eikon estimates.

Maintenance and production curtailments in its Canadian oil production, as well as weak oil and natural gas prices, pushed profits down in its oil and gas unit by 10.3 percent, the company said.

Shares were down about 2.7 percent in premarket trading on Friday.

Exxon’s oil and gas production rose 2 percent overall to 4 million barrels per day, up from 3.9 million bpd in the same period the year prior. The company said its still-growing output in the Permian Basin, the largest U.S. shale basin, rose 140 percent over a year ago.

Reporting by Jennifer Hiller in Houston; Editing by Chizu Nomiyama and Susan Thomas

Related posts