Exxon Mobil shares fall as profits do not meet expectations



Exxon Mobil reported Friday that its quarterly earnings increased from the previous year, but did not meet expectations, marking the second consecutive quarter that earnings disappointed Wall Street.

The increase in prices helped boost Exxon's profits and revenues in the first quarter.

"The increase in commodity prices, together with a focus on operating efficiently and strengthening our portfolio, resulted in higher profits and the highest quarterly cash flow from operations and asset sales since 2014 "said Darren Woods, president and CEO. a declaration.

Exxon's earnings increased 16 percent to $ 4.65 billion a year ago, but fell a few cents below expectations on a per-share basis. The oil giant reported earnings of $ 1.09 per share, compared to $ 1.12 forecast by Thomson Reuters.

Revenues reached $ 68.21 billion, also 16 percent more than a year ago. 19659003] However, profits in Exxon's downstream business, which refines and sells fuels such as gasoline, fell by almost 16 percent compared to the same period last year. The company attributed the performance to its international business, where it posted higher expenses, lower profit margins and weaker gains from the sale of assets.

The company's chemical business also fell, with profits falling about 14 percent from last year. Both at home and abroad, Exxon's profit margins fell while they spent more to increase their future production of chemicals.

Meanwhile, profits increased 50 percent to $ 3.5 billion in Exxon's businesses exploring and producing oil and natural gas [19659003] It should be noted that its US production business generated $ 429 million in profits, in compared to a loss of $ 18 million a year ago. Exxon has been investing in the production of shale oil in the United States, particularly in the prolific Permian Basin that underlies Texas and New Mexico.

Exxon's production of oil, natural gas and other liquids fell 6 percent from the previous quarter. An earthquake in Papua New Guinea in February disrupted operations at the Exxon liquefied natural gas facility, reducing its quarterly earnings by $ 80 million.

Despite returning to earnings growth last year, investors sold the company's shares after Exxon reported fourth-quarter results that did not meet Wall Street expectations. The actions have not yet been fully recovered.

The performance of Exxon shares has also lagged behind the energy sector in general, as well as its Big Oil peers such as Chevron and Royal Dutch Shell. Chevron will report its earnings on Thursday morning.

Exxon shares fell 4 percent in the last year, compared to a 9 percent gain for the S & P 500 energy sector.

This is breaking news. Please check the updates.

.


Source link

Check Also

Alaska Airlines introduces basic rates for seats on the back of the plane

Delta, American and United are already selling a similar no-frills rate called "basic economy" that …