Exxon Mobil shares fall 3.5% as oil major reports big miss on earnings

    Exxon Mobil shares fell in premarket trading after the oil major reported quarterly profit that fell short of Wall Street’s expectations, adding another disappointment to a string of earnings misses.

    Shares of the Irving, Texas-based company were down 3.5 percent following the release.

    While Exxon’s profits jumped 18 percent to nearly $4 billion in the second quarter, earnings per share of 92 cents fell short of consensus estimates for $1.27, according to Thomson Reuters.

    Key Metrics:

    • Exxon Mobil earnings: 92 cents per share vs $1.27, according to Thomson Reuters
    • Exxon Mobil Revenue: $73.50 billion vs $72.58 billion, according to Thomson Reuters

    Exxon CEO and Chairman Darren Woods said the company’s earnings were primarily impacted by “significant” maintenance to support the integrity of Exxon’s operations. The company was also disappointed with “extended recoveries” from incidents in the prior quarter in Exxon’s downstream business, which focuses on refining crude oil into fuels like gasoline, Woods said.

    The company posted a profit of $29 million in its international downstream business, down significantly from more than $1 billion a year ago. That weighed on profits in the global refining and marketing business, which was down by nearly a half to $724 million.

    The company undertook maintenance in Saudi Arabia; Port-Jér me, France; Baytown and Beaumont, Texas; and Alberta, Canada during the quarter.

    Exxon also saw capital expenses and spending on exploration for oil and gas surged 69 percent to $6.6 billion in the quarter, driven by investments in the U.S. Permian basin, Brazil and Indonesia.

    “Key projects in Guyana, the U.S. Permian Basin, Brazil, Mozambique and Papua New Guinea are positioning us well to meet the objectives we outlined in our long-term earnings growth plans. The high quality of these resources, combined with our strengths in project execution and innovation, will generate strong value over time,” said Woods said in a statement.

    Profits in the company’s upstream business — which focuses on exploring for and developing oil — more than doubled to over $3 billion.

    Earnings for Exxon’s chemicals business were also down, falling to $890 million from $985 million a year ago.

    Exxon’s earnings have been steadily improving as oil prices continue to recover from a prolonged slump. However, the company’s profits have fallen short of Wall Street’s expectations in three of the last four quarters.

    Shares of the world’s largest publicly listed oil company have recently recovered. Exxon’s stock price was up nearly 1 percent this year through Thursday’s close, lagging its Big Oil peers in Europe but outperforming fellow U.S. oil major Chevron, which also reports second quarter earnings on Friday before the bell.

    This story is developing. Please check back for updates.

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