[NEWS] Exxon Mobil’s first-quarter profit misses estimates on lower oil, gas prices – Loganspace AI

(Reuters) – Exxon Mobil Corp on Friday reported a 49 p.c drop in first-quarter revenue, missing forecasts which capacity of a weakness across its main corporations that showed the turnaround on the corporate stays a piece in growth.

The largest U.S. oil producer posted its first loss in its refining industry since 2009 on elevated upkeep costs and reported lower profits in chemicals and oil and gas.

“It used to be a worldly market surroundings for us this quarter,” Exxon Senior Vice President Jack Williams said on a name with analysts.

First-quarter revenue fell to $2.35 billion, or 55 cents a part, from $4.65 billion, or $1.09 a part, a yr ago.

Cash float from operations of $8.3 billion used to be offset by capital spending and dividend funds of $10.4 billion.

“That they had a mighty $2 billion cash float shortfall that I don’t judge consumers shall be tickled with,” said Jennifer Rowland, analyst with Edward Jones.

Exxon continues to exhaust carefully to boost its oil and gas output, which had been on a years-long gallop. Chief Executive Darren Woods has said he believes the corporate has a probability to make investments even as peers have targeted extra on making improvements to cash float and part buybacks.

Shares fell 2.1 p.c to shut at $80.49 on Friday.

Analysts had anticipated Exxon to manufacture 70 cents per part, consistent with Refinitiv Eikon estimates.

Upkeep and manufacturing curtailments in its Canadian oil manufacturing, moreover dilapidated oil and pure gas prices, pushed profits down in its oil and gas unit by 10.3 p.c, the corporate said.

“Clearly, the corner is further away than we anticipated and we put a question to this to end result in underperformance within the shut to term,” RBC Capital Markets said in a shopper existing.

Exxon’s oil and gas manufacturing rose 2 p.c general to 4 million barrels per day (bpd), up from 3.9 million bpd within the an identical duration the yr prior.

The corporate’s growing output within the Permian Basin, the largest U.S. shale basin, used to be a luminous direct, rising to 226,000 barrels of oil identical per day (boepd) within the first quarter.

It said it stays heading within the correct path to provide 1 million boepd by 2024.

Rivals Chevron Corp and Occidental Petroleum Corp are combating to raise over Anadarko Petroleum Corp.

“I’d be surprised if over time we did no longer accumulate up some extra Permian acreage,” Williams said when an analyst requested about that you just more than likely can imagine acquisitions, but added that Exxon “doesn’t must.”

Exxon’s refining industry misplaced $256 million within the first quarter, compared with a revenue of $940 million within the an identical duration closing yr.

Its chemicals industry earned $518 million, down fifty three p.c from profits of $1.1 billion in the end of the an identical duration closing yr, whereas its upstream industry, which pumps oil and gas, had a revenue of $2.9 billion, down 18 p.c.