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Posted: 27 Jul 2018 8:00 am Updated: 27-Jul-2018 21:01 pm
DALLAS (AP) – Rising oil prices have boosted profits by 18 percent. Exxon Mobil Corp. in the second quarter $ 3.95 billion, but Friday's results fell short of Wall Street expectations, and stocks fell nearly 3%.
The reference international crude price is up more than 50% compared to last year. But Exxon's oil and gas production dropped by 7% and therefore did not take full advantage of the price hike.
Rival Chevron Corp. increased its production by 2% and more than doubled its profit in the second quarter. One year ago.
"Second quarter results were well below market expectations," said Neil Hansen, Exxon's vice president of investor relations, at the start of a call for analysts. Exxon has sharply increased its investment spending – a reversal from the reduction that Exxon and other major oil companies have made after the price collapse that began in 2014. It has major projects underway off South America, Africa and Papua New Guinea.
Neil Chapman, executive vice president of exploration and production activities at Exxon, said the second quarter was the low point.
However, Exxon is now expecting to fall short of a Chapman forecast made in March – the production of 2018 should match that of last year. Exxon predicted on Friday that it would produce the equivalent of 3.8 million barrels per day, including natural gas, compared with 2017's 4 million barrels per day.
Among the reasons cited by Chapman , an earthquake halted operations in Papua New Guinea and the company's decline in natural gas in the United States due to relatively low prices. He said that the company would focus on the most profitable production.
Exxon's oil production has dropped three consecutive quarters and five of the last seven quarters, compared to the previous year's results. Until mid-2016, the company has steadily increased its production.
Exxon's profit in the second quarter was 92 cents per share. According to a study by Zacks Investment Research, analysts were looking for $ 1.26 per share. Exxon does not adjust the results based on exceptional events such as the sale of assets, which totaled $ 307 million during the quarter.
Revenues jumped 27% to $ 73.50 billion despite lower oil and gas production. The strengths of Exxon's portfolio are the Permian Basin of Texas and the Bakken Field of North Dakota, where production increased by 30%
Investment spending increased by 69% to 6 $ 63 billion. and Indonesia.
The Irving, Texas, company devoted the largest portion of its earnings to shareholder dividends, or $ 3.5 billion. The value of Exxon shares, however, has only gained a few dollars since a low point in September 2015, although crude has risen by more than 50% since then.
Exxon shares fell $ 2.32, or 2.8% to $ 81.92. That left stocks down 2.1 percent so far this year – they started the day up less than 1 percent in 2018.
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