Oil giant Exxon Mobil struggled against low oil prices in the first quarter of 2016 as profits dropped significantly compared to the same time last year, the company said Friday.
The company estimated its first quarter earnings at $1.8 billion compared with $4.9 billion a year ago. It said low oil prices and weaker refining margins continue to impact the company, relying on its chemical business to partly offset the losses
“The organization continues to respond effectively to challenging industry conditions, capturing enhancements to operational performance and creating margin uplift despite low prices,” said CEO Rex W. Tillerson. “The scale and integrated nature of our cash flow provide competitive advantage and support consistent strategy execution.”
U.S. upstream operations, or drilling, recorded a loss of $832 million, compared to a loss of $52 million in the first quarter of 2015.
Downstream earnings from refining were $906 million, down $761 million from the first quarter of 2015.
Its chemical earnings were $1.4 billion, a $373 increase from the first quarter of 2015.
Similar news was also reported by major oil company Chevron on Friday. Chevron reported a loss of $725 million in the first quarter of 2016, compared to its $2.6 billion earnings a year ago.
“Our upstream business was impacted by a more than 35 percent decline in crude oil prices,” said CEO John Watson. “Our downstream operations continued to perform well, although overall industry conditions and margins this quarter were weaker than a year ago.”
