Exxon’s Q3 Profit Falls To $9.57 Billion
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IRVING (AP) – Exxon Mobil Corp.’s third-quarter profit fell 7 percent as it produced less oil and gas and fetched lower prices.
The nation’s biggest oil company said that net income totaled $9.57 billion, down from $10.33 billion a year earlier.
That works out to $2.09 per share. Analysts expected $1.95 per share, according to FactSet.
Revenue fell 8 percent, to $115.71 billion, still better than the $112.40 billion that analysts had forecast.
The weak global economy has lowered demand for everything from gasoline to jet fuel. Fear about future growth has undercut prices for oil and natural gas.
Exxon’s business of refining oil and selling gasoline and other products earned more, but that was offset by a big drop in the exploration-and-production end of the company. Oil and gas production fell 7.5 percent and lower prices also cut into profit.
The company spent 7 percent more on capital expenses and exploration, up to $9.18 billion.
Exxon spent $5.1 billion in the quarter to buy back 58 million shares, which boosted the value of remaining stock.
Exxon shares closed Wednesday at $91.17, up 55 cents. They have gained 6 percent this year including a gain of 7 percent in the third quarter.
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