ExxonMobil earnings plummet 63% on plunging oil prices

[NEW YORK] US energy giant ExxonMobil reported Friday that first-quarter earnings dived 63 per cent to US$1.8 billion due to plunging oil prices.

ExxonMobil's upstream division, usually a cash cow that explores for and produces petroleum, suffered a US$76 million loss. That was partially offset by higher earnings in the oil giant's chemical division.

Revenues tumbled 28 per cent to US$48.7 billion.

The results are the latest in a wave of petroleum industry results to reflect the battering effect of low prices. Earlier this week, both BP and ConocoPhillips reported losses for the quarter.

ExxonMobil said its upstream business boosted oil and gas production by 1.8 per cent from the year-ago period to 4.3 million barrels per day.

Oil companies have slashed capital spending in response to low prices. However, in some cases, they have been able to keep production high as suppliers and oil-services companies have charged less for services.

ExxonMobil's earnings translated into 43 cents per share, 12 cents more than analyst expectations.

Shares rose 1 per cent to US$88.90 in pre-market trade.

AFP