Exxon Mobil, Chevron earnings miss expectations, shares fall

By Ernest Scheyder

HOUSTON (Reuters) – Exxon Mobil Corp (NYSE:) and Chevron Corp (NYSE:), two of the world’s largest oil producers, posted quarterly results far short of Wall Street’s expectations on Friday, sending their shares dropping in morning trading.

The disappointing results come as the oil industry has been working to rebound from a three-year downturn in the energy sector that led to massive budget cuts and layoffs.

Exxon shares fell 3.5 percent just after the opening bell, with Chevron’s shares lost 1.3 percent. Both stocks are components of the .

The results were particularly weak at Exxon, which has been trying to boost operations in a bid to revive its stock price.

Despite rising oil prices, Exxon’s production dropped 7 percent and it spent heavily to upgrade several key refineries in France, Canada, Texas and Saudi Arabia.

Earnings from the company’s downstream unit, which refines into gasoline and other products, fell 47 percent, which Chief Executive Darren Woods said was the primary drag on earnings in the quarter.

Exxon earned 92 cents per share, while analysts expected earnings of $1.27per share, according to Thomson Reuters I/B/E/S.

At Chevron, oil production rose 2 percent and profit spiked, but higher expenses surprised Wall Street.

Chevron earned $1.78 per share, while analysts expected $2.09 per share, according to Thomson Reuters I/B/E/S.

Royal Dutch Shell (LON:), a key rival, posted second quarter profit on Thursday far below forecasts due in part to weakness in its refining, trading and marketing division.

British oil major BP (LON:) Plc is set to report quarterly results next week. BP said on Thursday it would buy U.S. shale oil and gas assets from global miner BHP Billiton (LON:) for $10.5 billion, expanding its footprint in oil-rich onshore basins in its biggest deal in nearly 20 years.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.