Exxon Mobil profit sinks on weakness in chemicals, refining

HOUSTON — Exxon Mobil Corp on Friday reported a 21% drop in quarterly profit, its third period in a row of weaker year-over-year results, as sharply higher oil production was offset by weaker refining and chemicals business.

Shares slipped 1.6 percent to $71.34 in early trading even though its 73 cents a share profit topped analysts’ recentlylowered estimates. Analysts had reduced estimates to 66 cents per share after Exxon last month guided to lower yearover-year profit.

Exxon’s weaker earnings mirrored those at rivals Royal Dutch Shell, Equinor and Total SA. Shell posted its smallest profit in 30 months on weaker margins in chemicals, a loss in refining and tumbling natural gas prices. Total also cited weaker natural gas and refining operations for earnings that fell 19% from a year ago, while Equinor’s profit fell 27% on weaker oil and gas prices.

A bright spot for Exxon was oil and gas production rising 7% to 3.9 million barrels per day. Output in the top U.S. shale field, the Permian Basin, rose to 274,000 barrels of oil and gas per day, up 90% from a year ago.

“Three of our businesses were at lows in their cycles,” said Neil Chapman, an Exxon senior vice president, adding the company historically invests during downturns for longterm returns.

The largest U.S. oil producer’s net income fell to $3.13 billion, or 73 cents per share, in the second quarter, from $3.95 billion, or 92 cents per share, last year.

“Pretty weak quarter from them once again,” said Jennifer Rowland, analyst with Edward Jones. After capital spending and dividends, Exxon had a free cash flow shortfall of $2.7 billion, similar to last quarter, Rowland added.

Exxon has made “limited progress on asset sales,” though, analysts at Tudor, Pickering, Holt & Co said in a note to clients.

Exxon’s Chapman said the company remains committed to selling $15 billion worth of assets through 2021.