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ExxonMobil shrugs off crude's fall



By Upstream staff 

US supermajor ExxonMobil has booked higher first-quarter earnings as higher profits from its refineries outweighed lower crude oil prices.

Net income in the quarter rose to $9.28 billion, or $1.62 a share, from $8.4 billion, or $1.37 a share, last year.

Revenue in the quarter fell to $87.22 billion from $88.98 billion last year.

Earnings at the company's oil and gas exploration and production unit fell 5% to $6.04 billion, on lower commodity prices and decreased natural gas volumes.

Still, ExxonMobil's profit from its refining and marketing business surged more than 50% to $1.91 billion on higher margins from its refineries and service station sales, as well as increased use of its refineries.

Its chemical segment's earnings rose 30% to $1.24 billion.

Oil prices dropped sharply at the beginning of the quarter as geopolitical tensions seemed to ease, but renewed friction with Iran as well as concerns about gasoline supplies have pushed prices back up.

The average price of US crude was around $58 for the quarter - about $5, or 8%, lower than year-earlier levels.

Since the beginning of the year, ExxonMobil shares are up 4.3%, underperforming the Chicago Board Options Exchange's oil index, which rose about 6.6% in the same period.

Rex Tillerson now heads the company, after the retirement of Lee Raymond.


Thursday, 26 April, 2007, 12:34 GMT  | last updated: Thursday, 26 April, 2007, 12:42 GMT

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