Exxon profits hit by weaker oil
Exxon Mobil, the world’s largest private oil company, has posted a sharp fall in quarterly profits as the price of oil dropped from its peak.
Net profit for the first three months of the year fell 58% to 4.55bn (3.06bn) from a year earlier.
The price of crude oil has averaged less than 50 a barrel this year, down from a record high of 147 last July.
Production during the quarter rose slightly to the equivalent of 4.2 million barrels of oil per day.
Exxon’s earnings were less than many Wall Street analysts had expected.
Last year the company reported record profits of 45.2bn for the year.
The company said it has increased its capital and exploration expenditures to 5.8bn, up 5% from the first quarter of 2008.
“In spite of the dramatic changes to the global economic environment, ExxonMobil is maintaining its long-term focus and disciplined approach to capital investment,” said Exxon chairman Rex Tillerson.
Earlier this week, UK oil giant BP said its first-quarter profits fell 62% from a year ago.
ExxonMobil is the largest company in the US as measured by sales and profits.