Exxon posts weakest results since 1999 merger

ExxonMobil Corp posted its weakest first-quarter output since the 1999 merger that created the company in its modern form, underscoring the eroding quality of its worldwide portfolio.

The explorer pumped the equivalent of 3.889 million barrels a day in the quarter, the first sub-4 million figure for that time of year in almost two decades. The number was also lower than all seven estimates from analysts in a Bloomberg survey. Exxon announced the results yesterday in a statement; the shares fell 1.9 per cent at 8:22am in New York.

Chief Executive Officer Darren Woods is seeking to rebuild oil and gas reserves in an investment drive targeting $30 billion (Dh110 billion) in annual outlays well into the next decade. Woods’ vision runs counter to what investors are demanding from rivals, which have been restraining spending and returning cash to shareholders in the form of stock buy-backs.

Major oil producers in Europe, meanwhile, have posted some of their best quarterly results in years amid an oil rally driven by Opec-led production cuts, geopolitical threats and swelling demand. Exxon’s first-quarter profit of $1.09 a share was a penny below the average of 17 analysts’ estimates in a Bloomberg survey. The Irving, Texasbased company is scheduled to host a conference call at 9:30am Eastern time.

Woods, in his second year at the helm, has said buybacks rank below dividends and investments in five key long-term projects from Brazil to Papua New Guinea.