Exxon Mobil Corporation (NYSE:XOM) reported that its earnings for the third quarter plummeted 47 percent amid low crude prices. However the results beat consensus forecast, driven by strong profit from its refining segment.
Crude prices have tumbled over 50 percent over the last year, which affected Exxon’s biggest oil and gas business on one hand, though boosted profit margins in its refining division on the other hand.
An analyst at Edward Jones, Brian Youngberg said the international refining was the surprise which was better-than-expected.
To offset the impact of weak oil prices, a number of Exxon’s peers are cutting jobs and closely watching their capital spending. Head of investor relations at Exxon, Jeff Woodbury said the company is so far maintaining its budget outlook intact and plans no reorganizing charges.
This year, the world’s biggest publicly traded oil company anticipates to spend $34 billion. Though, Woodbury said spending so far in 2015 is tracking lower than estimated, therefore the final figure will come in below prediction. He added that XOM will issue its latest capital strategy in March.
Exxon Mobil reported earnings of $4.24 billion, or $1.01 a share for the quarter, representing a sharp decline from $8.07 billion, or $1.89 a share in the same period one year ago. Analysts surveyed by Thomson Reuters I/B/E/S were looking for earnings of 89 cents a share.
The Irving, Texas, company said that refining earnings increased almost two folds to $2 billion in the latest quarter, while profit at its exploration and production dropped to $1.4 billion.
Oil and gas output surged 2.3 percent from last year to 3.9 million oil-equivalent barrels a day. The company is still on its way for output equalling 4.1 million oil-equivalent barrels a day.
