Home OIL & GAS Low Prices Deal Blow On ExxonMobil, Chevron

Low Prices Deal Blow On ExxonMobil, Chevron

Exxon Mobile and Ceveron

ExxonMobil and Chevron reported sharp deteriorations in first-quarter earnings, hit by lower oil and gas prices and a squeeze on refining margins.

But their results reflected differing degrees of strain.

ExxonMobil reported a 63% slide in first quarter profits following low crude oil prices and weak refining margins.

It reported a profit of $1.8bn (£1.24billion), a sharp decline from $4.94billion for the same period last year and its lowest quarterly profit since 1999.

Revenue dropped 28% to $48.7bilion, but it had strong results from its petrochemicals division.

Rival Chevron fared even worse, with a quarterly net loss of $725million. That compared with a net profit of $2.57billion for the same period in 2015 and was worse than analysts had expected.

John Watson, Chevron chief executive, said: “We are controlling our spend and getting key projects under construction online, which will boost revenue.”

Shares in ExxonMobil rose 1.4% in New York  while Chevron fell 0.6%. [myad]