Exxon Mobil Corp. (XOM) reported a 58 percent decrease in profit for the fourth-quarter from last year, reflecting lower revenue and commodity prices in the Upstream. It was partly offset by higher downstream earnings.
In pre-Market, XOM is currently trading at $74.01, down $2.28 or 2.99%.
"While our financial results reflect the challenging environment, we remain focused on the business fundamentals, including project execution and effective cost management," said Rex Tillerson, chairman and chief executive officer.
Net income attributable to the company for the fourth-quarter 2015 fell to $2.78 billion or $0.67 per share, from $6.57 billion or $1.56 per share in the fourth quarter of 2014.
Analysts polled by Thomson Reuters expected the company to report earnings of $0.63 per share for the quarter. Analysts' estimates typically exclude special items.
Capital and exploration expenditures were $7.4 billion, down 29 percent from the fourth quarter of 2014.
Upstream earnings were $857 million in the fourth quarter of 2015, down $4.6 billion from the fourth quarter of 2014. Lower liquids and gas realizations decreased earnings by $3.7 billion, while volume and mix effects increased earnings by $100 million, benefiting from new developments. All other items, including the absence of both the prior year U.S. deferred income tax effects and recognition of a favorable arbitration ruling for expropriated Venezuela assets, decreased earnings by $960 million.
On an oil-equivalent basis, production increased 4.8 percent from the fourth quarter of 2014. Liquids production totaled 2.5 million barrels per day, up 299,000 barrels per day. Project ramp-up, work programs and entitlement effects were partly offset by field decline. Natural gas production was 10.6 billion cubic feet per day, down 631 million cubic feet per day from 2014 due to regulatory restrictions in the Netherlands and field decline, partly offset by entitlement effects.
Downstream earnings were $1.4 billion, up $854 million from the fourth quarter of 2014. Stronger margins and favorable volume and mix effects increased earnings by $610 million and $70 million, respectively. All other items increased earnings by $170 million, including lower maintenance expenses and favorable foreign exchange and tax effects, partly offset by unfavorable inventory impacts.
Total revenues and other income for the quarter dropped 31.5% to $59.81 billion from $87.28 billion last year. Wall Street expected revenues of $51.36 billion for the quarter.
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