Exxon Mobil profit falls 49% as oil and gas prices decline

NEW YORK – Exxon Mobil’s profits fell dramatically in the third quarter as the company was hurt by lower prices for crude oil and natural gas.

The Texas oil giant reported $3.17 billion in profits in the third quarter Friday, down 49% from the same time last year.

Total revenue was $65.05 billion, down 15% from the same time last year.

Oil prices have suffered due to a prolonged trade war between the U.S. and China, which has raised concerns about a global economic slowdown.

Natural gas prices have also been low as a glut of the fuel in the U.S. floods the market.

Despite falling prices, oil production rose 3% to 3.9 million barrels per day, driven primarily by growth in the Permian Basin. Production in the Permian was up 72% compared with the same time last year, the company said.

“We feel really good about the volume growth that we see out there,” said Neil Hansen, vice-president of investor relations, on a conference call with investors. “The resource continues to respond very well.”

Outside the U.S., Exxon had five significant deep-water discoveries in Guyana and Cyprus during the quarter.

The company earned 75 cents per share, down 49% from a year ago, which beat expectations of analysts polled by FactSet, who were expecting 69 cents per share. Its profits were helped by a favourable tax-related item of about $300 million.

Exxon’s share price was up 2% to $68.88 in mid-morning training.