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Exxon Mobil Q4 Profit Misses View; Chevron Slips To Loss, Yet Tops

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Oil major Exxon Mobil Corp. (XOM) Friday reported a 5.2 percent decline in profit for the fourth-quarter quarter from last year, while Chevron Corp. (CVX) posted quarterly loss from a profit a year ago.

Exxon Mobil's adjusted earnings missed analysts' expectations, but its revenues beat estimates. Meanwhile, Chevron's adjusted earnings topped expectations, however, revenues missed view.

XOM is currently trading at $62.88, down $1.91 or 2.95 percent. CVX is trading at $108.40, down $3.00 or 2.69 percent.

Exxon Mobil Corp. reported that its fourth-quarter net income attributable to the company declined 5.2 percent to $5.69 billion from the prior year's $6.00 billion, with earnings per share decreasing to $1.33 from $1.41 last year. The latest-quarter result included favorable identified items of about $3.9 billion or $0.92 per share, mainly a $3.7 billion gain from the Norway upstream divestment.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.43 per share for the quarter. Analysts' estimates typically exclude special items.

"Our operations performed well, while short-term supply length in the downstream and chemicals businesses impacted margins and financial results," said Darren Woods, chairman and chief executive officer of Exxon Mobil.

Oil-equivalent production was in line with the fourth quarter of 2018, at 4 million barrels per day, with a 4 percent increase in liquids offset by a 5 percent decrease in gas. Excluding entitlement effects and divestments, liquids production increased 2 percent driven by Permian Basin growth, while natural gas volumes decreased 4 percent.

Total revenues and other income for the quarter declined to $67.17 billion from $71.90 billion in the prior year. Analysts expected revenues of $64.17 billion for the quarter.

ExxonMobil's upstream segment earnings surged to $6.14 billion from last year's $3.31 billion, reflecting gain from the Norway upstream divestment, partly offset by lower gas prices, higher maintenance and unfavorable tax impacts.

ExxonMobil's downstream segment earnings dropped to $898 million from $2.70 billion last year, due to lower margins, partly offset by portfolio/projects contribution and favorable foreign exchange.

Chemicals segment's net loss was $355 million, compared to net income of $737 million in the previous year.

Meanwhile, Chevron reported a attributable loss of $6.61 billion or $3.51 per share for fourth quarter 2019, compared to earnings of $3.73 billion or $1.95 per share in the fourth quarter 2018.

Net income attributable to the company, excluding special items and foreign currency effects, for the quarter was $2.80 billion or $1.49 per share, compared to $3.73 billion or $1.95 per share in the previous year. Analysts expected the company to report earnings of $1.45 per share for the fourth-quarter.

The latest quarter included upstream impairments and write-offs of $10.4 billion associated with Appalachia shale, Kitimat LNG, Big Foot and other projects. The company also recognized a $1.2 billion gain on the sale of the U.K. Central North Sea assets in the fourth quarter. Foreign currency effects decreased earnings in the latest-quarter by $256 million.

Total revenues and other income for the fourth-quarter were $36.35 billion, down from $42.35 billion in the prior year. Wall Street analysts had a consensus revenue estimate of $38.64 billion for the fourth-quarter.

Chevron's upstream segment loss was $6.73 billion compared to earnings of $3.29 billion a year earlier, primarily due to $8.2 billion in impairment charges primarily associated with Appalachia shale and Big Foot.

Chevron's downstream segment net income declined to $672 million from $859 million a year earlier.

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