Exxon Mobil, the erstwhile largest company in the world by market capitalisation, has posted a 58 per cent drop in quarterly profit as the languishing oil price continues to eat into the performance of the company.
Exxon, which still holds the mantle of the world's largest publicly traded oil company, reported its fourth-quarter profit slipped to $2.78bn, from $6.57bn, in the same period a year earlier.
Despite the low oil price Exxon said in a statement its oil and gas output production increased 4.8 per cent in the fourth quarter.
The increase in output was not enough to offset the lower oil price however, as revenue tumbled by nearly a third to $59.8bn.
The numbers were not as bad as some had thought though, with analysts expecting sales of $52.3bn and adjusted profit of $2.6bn.
Exxon has managed to beat expectations in its recent quarterly statements.
Earlier today the BP share price tumbled by more than 6.7 per cent, as the British energy giant recorded a replacement cost loss of $2.23bn in the fourth quarter, up from $969bn.
Last week Exxon rival Chevron posted its first loss since 2002, bracing itself for a review of its credit rating.
“While our financial results reflect the challenging environment, we remain focused on the business fundamentals, including project execution and effective cost management,” said Rex W. Tillerson, chairman and chief executive officer. “The scale and diversity of our cash flows, along with our financial strength, provide us with the confidence to invest through the cycle to create long-term shareholder value.”
The firm’s capital and exploration expenditures fell by 19 per cent over the same period last year to $31.1bn, as the company battens down the hatches against the falling oil price.