ExxonMo­bil be­ing held to ac­count

The Myanmar Times - - International Business -

EXXONMO­BIL is be­ing in­ves­ti­gated by the New York at­tor­ney gen­eral for not writ­ing down as­sets due to the oil price crash.

The probe un­der­taken by New York At­tor­ney Gen­eral Eric Sch­nei­der­man looks at ExxonMo­bil’s ac­count­ing in the wake of the US oil gi­ant’s ex­cep­tion­ally good fi­nan­cial per­for­mance dur­ing the oil rout.

Ri­vals, in­clud­ing Royal Dutch Shell and Chevron, have taken large as­set write-downs that have led them to re­port quar­terly losses over the last two years.

Such write-downs are made when lower com­mod­ity prices make a firm’s oil­fields un­eco­nom­i­cal, but ExxonMo­bil has not taken such steps.

The New York in­ves­ti­ga­tion was re­ported by the Wall Street Jour­nal.

ExxonMo­bil de­clined to com­ment but a spokesper­son cited long-stand­ing com­pany pol­icy against down­grad­ing as­sets in re­sponse to short­term drops in com­mod­ity prices.

The com­pany in 2015 un­der­took an as­set re­view based on com­mod­ity prices “that are gen­er­ally con­sis­tent with the long-term price fore­casts pub­lished by third-party in­dus­try ex­perts”, ExxonMo­bil said.

Mr Sch­nei­der­man has also launched an in­ves­ti­ga­tion into whether ExxonMo­bil know­ingly un­der­stated the risks of cli­mate change to con­sumers and share­hold­ers.

ExxonMo­bil has vig­or­ously fought this probe, which has been at­tacked by con­gres­sional Repub­li­cans as an ex­am­ple of ju­di­cial over­reach. –

Photo: AFP

The probe un­der­taken by New York At­tor­ney Gen­eral Eric Sch­nei­der­man looks at ExxonMo­bil’s ac­count­ing in the wake of the US oil gi­ant’s ex­cep­tion­ally good fi­nan­cial per­for­mance dur­ing the oil rout.

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