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Another record profit for Exxon | Another record profit for Exxon |
(about 3 hours later) | |
Oil giant Exxon Mobil made a profit of $11.68bn between April and June, breaking its own record for the highest quarterly profit by a US company. | Oil giant Exxon Mobil made a profit of $11.68bn between April and June, breaking its own record for the highest quarterly profit by a US company. |
The 14% rise in profit was thanks to the surge in crude oil prices, which were almost double the price they were in the same period a year earlier. | |
But profits disappointed investors, who sent Exxon's share price down 3%. | But profits disappointed investors, who sent Exxon's share price down 3%. |
Profit growth was dented by declines in production, reduced demand for petrol and lower margins on refining. | Profit growth was dented by declines in production, reduced demand for petrol and lower margins on refining. |
Sales of petrol and related products fell from the year before because of lower demand, the firm said. | Sales of petrol and related products fell from the year before because of lower demand, the firm said. |
Production disruption | Production disruption |
Crude production declined 8% in the quarter, partly due to disruption in Venezuela and Nigeria. | Crude production declined 8% in the quarter, partly due to disruption in Venezuela and Nigeria. |
"They are spending $25bn a year on exploration4, and they are not even breaking even now in terms of production growth," said Gene Pisasale of PNC Capital Advisors. | "They are spending $25bn a year on exploration4, and they are not even breaking even now in terms of production growth," said Gene Pisasale of PNC Capital Advisors. |
During the quarter, Exxon also took a charge of $290m related to a penalty imposed on the firm for its role in Exxon Valdez oil spill disaster. | During the quarter, Exxon also took a charge of $290m related to a penalty imposed on the firm for its role in Exxon Valdez oil spill disaster. |
Last month, the US Supreme Court ruled that the $2.5bn (£1.25bn) fine initially imposed would be cut to $500m. | Last month, the US Supreme Court ruled that the $2.5bn (£1.25bn) fine initially imposed would be cut to $500m. |
Exxon Mobil won the right to appeal against the damages bill for the 1989 Alaskan oil spill after arguing the initial penalty was excessive. | Exxon Mobil won the right to appeal against the damages bill for the 1989 Alaskan oil spill after arguing the initial penalty was excessive. |
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