Profits At ExxonMobil Decline In The First Quarter As Natural Gas Prices Fall

(CTN News) – During the first quarter of 2009, ExxonMobil’s profit decreased due to a decline in natural gas prices and industry refining margins.

In the three months ended March 31, the energy company earned $8.22 billion, or $2.06 per share. In the previous year, the company earned $11.43 billion, or $2.79 per share.

As expected, ExxonMobil’s results did not meet Wall Street expectations. However, the company does not adjust its reported results based on one-time events such as asset sales. According to analysts polled by Zacks Investment Research, earnings per share were expected to be $2.19.

Prior to Friday’s market opening, shares declined slightly.

As compared to a year ago, the company reported a revenue of $83.08 billion, a decrease from $86.56 billion. According to Wall Street analysts, revenue will reach $86.6 billion.

During the second quarter of 2008, Guyana’s production reached more than 600,000 oil-equivalent barrels per day, a higher level than anticipated, the company stated.

During the period of high oil prices last year, ExxonMobil went on a bit of a shopping spree.

Announcing a $4.9 billion acquisition of Denbury Resources in July, the company said it would capture and store carbon and benefit from the changes in climate policy in the United States.

As a follow-up to that announcement, ExxonMobil announced in October that it would purchase Pioneer Natural Resources for $60 billion. After a period of two months, the Federal Trade Commission asked the companies for additional information regarding the proposed merger. When reviewing whether a merger may be anticompetitive under U.S. law, the agency submits a request. The request was disclosed in a filing made by Pioneer in January.

As a result of increased cash levels for all major energy producers, a massive consolidation took place in the industry. A $53 billion acquisition of Hess Corporation was announced by Chevron in October.

Saudi Arabia and Russia are cutting back on their oil production, and Israel and Hamas are engaging in a war that poses a potential threat to a broader conflict in the Middle East. According to the US Energy Information Administration, attacks on Israel do not disrupt global oil supply, but they raise the possibility of disruptions of oil supply and higher oil prices.

Chevron Corp., ExxonMobil and another company in this industry, reported a first-quarter profit of $5.5 billion, or $2.97 per share. An adjusted profit of $2.93 per share was reported by the company.

Although the results exceeded Wall Street expectations, ExxonMobil Chevron does not adjust its reported results based on one-time events, such as asset sales. Among the analysts surveyed by Zacks, $2.84 per share was predicted.

Oil company revenue of $48.72 billion fell short of Wall Street’s expectation of $49.94 billion.

Chevron’s stock dropped in premarket trading.

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