Exxon Mobil profit plunges by 66 per cent
EXXON Mobil, the US oil giant, posted a steeper-than-expected 66 per cent fall in second-quarter profit as natural gas and crude oil prices slid from a year ago and the global recession hurt demand for fuel.
Exxon Mobil, which raked in record profits last year, has seen earnings wither as crude oil prices have fallen by more than half from a year ago. Refiners have also seen margins under pressure as weakness in industrial demand for fuels like diesel has caused a build up in stockpiles.
Exxon Mobil, the world’s largest publicly traded oil company, said second-quarter net income was $3.95bn (£2.39bn), down from $11.7bn a year earlier. Sales fell 46 per cent to $74.5bn.
“Global economic conditions continue to impact the energy industry both in the volatility of commodity prices and reduced demand for products,” said chief executive Rex Tillerson. Earnings in the firm’s exploration and production business fell 62 per cent to $3.8bn, while earnings in the refining unit fell 67 per cent to $512m.
In the first six months of the year, Exxon Mobil said it spent $12.3bn, in line with its longer-term plan for capital spending of $125bn over 5 years.