Exxon's revenue and profit slipped in the fourth quarter
Posted January 31, 2020 8:35 a.m. EST
CNN — Oil giant Exxon Mobil reported a nearly $6 billion profit for the fourth quarter on Friday, but that wasn't enough to satisfy Wall Street. Earnings were down more than 5% from a year ago.
Exxon and other petroleum giants have been struggling lately as crude prices have fallen. Shares of Exxon fell in early morning trading and are down 7% this year.
Oil prices have tumbled nearly 15% in the past month. Concerns about a supply disruption in the Middle East have eased somewhat after tension eased between the United States and Iran at the start of the year. And fears of the coronavirus in China have led to worries about a possible slowdown in demand.
Exxon also suffered from weaker profit margins in its chemical and refining business in the quarter.
But it wasn't all bad news for Exxon. The company reported revenue of $67.2 billion, which easily topped analysts' forecasts even though it was down 6.6% from a year ago.
Exxon reported strong production in the Permian basin, one of the oil-rich areas in the United States that has helped turn America into a petroleum producing powerhouse that is less reliant on oil from the Middle East to meet domestic energy needs.
"Growth in demand for the products that underpin our businesses remains strong," said Exxon chairman and CEO Darren Woods in a statement.
Exxon isn't the only oil giant that will report its latest results Friday. Chevron earnings are due out later in the morning.