Exxon Mobil Earnings Cut in Half

Exxon Mobil Corp., the biggest and richest U.S. oil company, reported a 52% drop in profit for its second quarter, even as lower crude prices drove its refining earnings higher.

Exxon's profit has been helped its downstream and chemicals divisions, which are being helped by low prices for oil and gas. In the first quarter, the segments reaped nearly as much profit as it made from pumping oil and gas—which traditionally generates the most profit.

In the latest quarter, refining and marketing earnings grew $795 million to $1.5 billion.

Profit in the exploration and production business fell to $2 billion from $7.9 billion a year earlier.

The chemical segment earnings improved $405 million to $1.2 billion.

Exxon noted that "higher downstream and chemical earnings were more than offset by the impact of weaker upstream realizations and lower asset management gains." Downstream operations refine oil into gasoline and other products, while upstream represents the company's exploration and production business.

In all, Exxon reported a profit of $4.19 billion, or $1 a share, down from $8.78 billion, or $2.05 a share, a year earlier. Revenue fell 33% to $74.11 billion.

Analysts polled by Thomson Reuters expected a per-share profit of $1.11 and revenue of $72.48 billion.

Capital spending fell to $8.26 billion from $9.8 billion a year earlier.

Exxon has moved to conserve cash in a sign that it doesn't expect a quick rebound in crude prices. The company has announced it would slash its capital spending by this year and reduce its stock buybacks in the near term.

Shares of Exxon Mobil, down 16% over the past year, fell 1.8% to $81.50 in premarket trading.

Write to Chelsey Dulaney at [e-mail]

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