Exxon sees 5pc drop in oil and gas production

City A.M. Reporter
EXXON Mobil yesterday posted a lower first-quarter profit as its oil and natural gas production slumped more than five per cent, pushing its shares down.

The company said in March its oil and gas output would be down about three per cent this year from 2011, but several large projects due on line would increase production up to two per cent on average each year through 2016.

Net profit slipped to $9.5bn (£5.8bn) or $2 per share, from $10.6bn, or $2.14 per share, in the year-ago quarter.

The profit included gains from asset sales of about $400m, although Exxon did not record those as extraordinary items.

Exxon’s total oil and gas production fell more than five per cent to 4.55m barrels of oil equivalent per day, largely due to declines outside the US. The drop in volumes reduced profits by $850m, but was mostly offset by higher global oil and gas prices, which added about $980m in profits during the quarter, the company said. Exxon’s profits from refining and marketing operations rose.