Exxon Mobil revenue despite falling oil prices.

6. February, 2015 News No comments

Even though oil prices are declining Exxon Mobile did far better than many other oil&gas companies. It was possible as a result of improved margins at its chemical business.

During the last quarter, the largest American oil&gas producer, have observed bothering signs such as 3,8 percent decline in production or compensation fell from $8,35 to $6,57 bilion. While they cutted their buybacks to $1 bilion and did not announced any precise new guidance it was clear trying to cut costs. In the final three months of 2014 brent crude brenchmark fell more than a 30 percent, oil prices collapsed in January, raising the probability that earnings for Exxon and other oil companies would crumble further.

Although prices have lifted during last days, experts doubt that they will align to sustainable level. Exxon had also to go through problems begotten by crisis in Ukraine and western sanctions on Russia, but have announced successes from its drilling in Argentina as well as an expansion of its development plans in West Africa and off the North Atlantic coast of Canada.

Executives indicate the importance of balanced bussines model, which integrates upstream, downstream and chemical businesses and is resistant to cyclic market. Earning from upstream production were $1,3 bilion down comparing to previous year, while income from chemical side was $317 milion higher mostly because of lower natural gas prices that serve as a feedstock.

Exxon Mobile acclaimed that most of its reduction in oil production came from the expiration of a concession in Abu Dhabi.

Source: http://www.nytimes.com

Image source: http://www.houstonchronicle.com

About author