ExxonMobil’s second-quarter profit dropped to the lowest level in four years as OPEC+ ramped up production and oil prices slumped, reports The Associated Press.
The Texas oil driller still topped Wall Street profit expectations Friday and shares rose slightly before the opening bell, even with global markets falling on the erratic trade policies of the U.S.
The price for a barrel of U.S. benchmark crude has remained below $70 for most of the year and in May dropped below $60.
ExxonMobil earned $7.08 billion, or $1.64 per share, for the period ended June 30. A year earlier it earned $9.24 billion, or $2.14 per share.
That was better than Wall Street expected, but the energy giant does not adjust its reported results based on one-time events, such as asset sales. Analysts surveyed by Zacks Investment Research were calling for earnings of $1.49 per share.
“We achieved our highest second-quarter upstream production since the merger of Exxon and Mobil more than 25 years ago,” Chair and CEO Darren Woods said, referring to the company’s exploration and production operations.
ExxonMobil offset lower prices by ramping up production as well. Second-quarter net production was 4.6 million oil-equivalent barrels per day. That was an increase of 79,000 oil-equivalent barrels per day when compared with the first quarter.
Revenue fell to $81.51 billion from $93.06 billion, missing the $82.82 billion that Wall Street was looking for.
Chevron Corp. reported a second-quarter profit of $2.49 billion, or $1.45 per share. Removing one-time costs, earnings were $1.77 per share.
That was also a four-year low for the second quarter, but it, too, beat Wall Street profit expectations. Analysts surveyed by Zacks Investment Research expected Chevron per-share earnings of $1.70.
Quarterly revenue for Chevron, which scored a critical ruling in Paris last month that gave it the go-ahead for a $53 billion acquisition of Hess, was $44.82 billion.
