ExxonMobil Profits Up Despite Lower Oil and Gas Output

ExxonMobil Profits Up Despite Lower Oil and Gas Output

Production of oil and gas declined 5.7%, but profitability in the exploration and production segment rose 25% to $7.9 billion.

NEW YORK-- Exxon (IW 500/1), the biggest US oil company and the second-largest US company in terms of market capitalization after Apple, said earnings came in at $8.8 billion, up 28% from the year-ago level.

Production of oil and gas declined 5.7%, but profitability in the exploration and production segment rose 25% to $7.9 billion. Exxon said "higher realizations" for its output added $580 million.

Lower oil and gas volumes is often seen as a red flag in the oil business. But Exxon has emphasized that it will not sacrifice profitability for higher output, meaning it will not produce oilfields unless they are highly profitable.

Exxon's downstream earnings rose nearly 80% to $711 million, while chemicals earnings rose 11.2% to $841 million.

"ExxonMobil's financial results were achieved through strong operational performance and portfolio management," said chief executive Rex Tillerson.

"We continue to enhance shareholder value by funding capital projects and delivering robust shareholder returns through dividends and share purchases."

Results translated into earnings per share of $2.05, 19 cents above analyst forecasts.

Revenues rose 4.7% to $111.65 billion, above the $108.38 billion analyst forecast.

Copyright Agence France-Presse, 2014

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