Exxon reports 46% decline in First Quarter earning
On Thursday, Exxon reported a 46% decline in earnings in the first quarter, by earning $4.9 billion compared with $9.1 billion in the same quarter a year ago. Exxon's top and bottom lines declined due to lower oil prices.
It was the company’s lowest first-quarter profit in six years, although the results still managed to beat Wall Street expectations.
Some drilling projects become unprofitable when world oil prices got collapsed from about $100 a barrel to less than $50 over the second half of previous year.
Previous month, Exxon stated that it is going to start cutting costs by trimming capital spending this year by 12%, to $34 billion, and that the CEO has been expected relatively low oil prices to stick around.
The company’s first-quarter profit has also dropped at BP PLC, and France's Total SA. Royal Dutch Shell reported an increase, as last year's results were weighed down by one-time charges.
In the first quarter, the production of Exxon has raised by 2% as compared with a year ago. As the flow of energy was from new projects from the US to Papua New Guinea, so the drop in profit was almost entirely from lower prices.
Exxon lost money on exploration and production in the US, as it earned $1.2 billion from that drilling last year. Although the production outside the US was profitable, yet the earnings fell by more than half.
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