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Profit Plummets for World’s Biggest Public Oil Company

October 28, 2016

Trading On The Floor Of The NYSE As U.S. Stocks Edge Higher Before Remarks From Yellen, Long WeekendTrading On The Floor Of The NYSE As U.S. Stocks Edge Higher Before Remarks From Yellen, Long Weekend
Exxon Mobil Corp. signage is displayed on a monitor on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, May 27, 2016. U.S. stocks edged higher, with the S&P 500 on course for its biggest weekly advance since March, while investors awaited remarks from Federal Reserve Chair Janet Yellen for hints on the timing of the next interest-rate increase. Photographer: Michael Nagle/Bloomberg via Getty ImagesBloomberg Bloomberg via Getty Images

Exxon Mobil, the world’s largest publicly traded oil company, on Friday reported a 38% drop in quarterly profit that still beat Wall Street’s expectations as cost cuts partly offset declining crude prices.

Shares of Exxon (XOM) were down 1.4% at 85.73 in pre-market trading.

The company reported third-quarter net income of $2.65 billion, or 63 cents per share, compared with $4.24 billion, or $1.01 per share, a year earlier.

Analysts on average expected a profit of 58 cents per share, according to Thomson Reuters I/B/E/S.

Earnings fell in all of the company’s divisions, including the refining arm, which has generally bolstered profits when oil prices are low.

Production fell about 3 percent to 3.8 million barrels of oil equivalent per day.

Exxon’s refineries processed about 2% less crude oil during the quarter than it did a year earlier.