ExxonMobil profit plunges 58 pc

WASHINGTON: US oil giant ExxonMobil said on Thursday its first-quarter earnings plunged a steeper-than-expected 58 per cent from the same period last year to $4.55 billion amid global economic contraction.

Its earnings per share during the January-March period dropped 54 per cent to 92 cents per share, lower than 95 cents expected by most analysts.

The company's revenue and other income fell 45 per cent to $64.03 billion from $116.85 billion previously - well above market estimates of $54.03 billion.

Company chairman Rex Tillerson expressed satisfaction with the earnings considering the rapid economic slowdown across the globe that has pulled down oil and other commodity prices, and vowed to maintained its long-term plans to develop new energy supplies.

"ExxonMobil posted solid first-quarter results despite the slowdown in the global marketplace and sharply lower commodity prices," he said.

"In spite of the dramatic changes to the global economic environment, ExxonMobil is maintaining its long-term focus and disciplined approach to capital investment," he said.

The company said its capital and exploration project spending increased five per cent from last year to $5.8 billion in the first quarter.

"We are committed to investing in our world-class inventory of projects to develop new energy supplies which are vital to economic growth," Tillerson said.

He also noted that the company had returned significant cash to shareholders in the first quarter, distributing a total of nine billion dollars through dividends and share purchases.

The stock of ExxonMobil, the largest component of the blue-chip Dow Jones Industrial Average, fell 2.00 per cent to $67.07 in early trading on Thursday.

The company "got to see exactly what the impact of lower oil prices does to the top line," said Jon Ogg of 24/7Wall Street.

He said the company's earnings of 92 cents per share was down from $2.02 a year ago while its net income of $4.55 billion fell from $10.89 billion.

Even on the revenue front, it was just as bad.

The $64.03 billion revenue "sounds high, but that compares to $116.85 billion a year ago," Ogg said.