Exxon Mobil announced on Friday that quarterly earnings were up year on year, but underperformed. This was the second quarter when profits disappointed Wall Street.
These rising prices helped boost Exxon's earnings and earnings in the first quarter.
"Increased raw material prices, coupled with a focus on working efficiently and strengthening our portfolio, resulted in higher profits and the highest quarterly cash flow from operating and asset sales since 2014," said Darren Woods, Chairman and Chief Executive Officer
Exxon earnings rose 16 percent year over year to $ 4.65 billion, but were down a few cents per share on expectations. The oil giant reported earnings of $ 1.09 per share, compared to $ 1.12 from Thomson Reuters.
Revenue was $ 68.21 billion, up 16 percent from a year ago. 19659003] However, Exxon's Downstream business, which refines and sells fuels such as gasoline, dropped nearly 16 percent year-over-year. The company attributed the performance to its international business, which saw higher expenses, lower profit margins, and lower gains on asset sales.
The company's chemical business also broke down last year. Both domestically and abroad, Exxon's profit margins fell while spending more to expand its future production of chemicals.
Meanwhile, profits at Exxon increased 50 percent to $ 3.5 billion. 196590000] Remarkably, the US manufacturing business made a profit of $ 429 million, compared with a loss of $ 18 million a year ago. Exxon has invested in US shale oil production, particularly in the productive Permian Basin that underlies Texas and New Mexico.
Exxon produced oil, natural gas and other liquids by 6 percent sequentially. An earthquake in Papua New Guinea plunged Exxon's LNG plant into operation in February, cutting its quarterly profit by $ 80 million.
Despite the return to last year's earnings growth, investors sold the company's shares after Exxon reported fourth-quarter results below Wall Street expectations. The stock has not yet fully recovered.
Exxon's stock performance has also lagged behind the broader energy sector, as have Big Oil's stocks such as Chevron and Royal Dutch Shell. Chevron will release its results on Thursday morning.
Exxon shares fell about 4 percent last year, compared to a 9 percent increase for the S & P 500 energy sector.
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