Exxon Mobil profits took a nosedive as the market for crude oil collapses.
The company reported only a $1.7 billion dollar profit, according to a Friday Bloomberg report, marking the lowest quarter that Exxon Mobil has seen since 1999.
Exxon isn’t the only oil company that is taking a hit from the recent oil collapse, Chevron reported a $2.8 billion dollar loss on assets, noting it’s the “longest losing streak in more than a quarter century,” reported Bloomberg. Shell also reported its lowest quarter in over a decade.
Fadel Gheit, a financial analyst with Oppenheimer & Co., stated that since the market for crude oil is tanking “you cannot recover no matter how efficient you are,” according to Bloomberg.
Exxon has produced roughly 112,000 barrels a day less than its typical average, reports Bloomberg.
The company noted wildfires in its western Canadian oil-reserves for why they are producing less oil and profits are down.
Both crude and natural gas prices dropped significantly from a year ago, dropping “30 percent to a second-quarter average of $17.12 a barrel from $24.42 a year earlier,” reports Bloomberg.
“While our financial results reflect a volatile industry environment, Exxon Mobil remains focused on business fundamentals, cost discipline and advancing selective new investments across the value chain to extend our competitive advantage,” CEO and Chairman of Exxon Rex W. Tillerson said in the wake of profit losses.
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