ExxonMobil (NYSE:XOM) reported a quarterly profit which fell nearly 60% from a year ago as commodity prices remained low with weak margins. One of the world’s largest oil company earned $1.7 billion with an adjustment of $0.41 earnings per share in the past quarter while compared to $4.2 billion of $1.00 earnings per share last year.
During the premarket trading, ExxonMobil fell as much as 2.6%. Analysts expected earnings per share of $0.64.
The recorded revenues were around $58 billion which is a dramatic downfall compared to last year’s $74.11 billion. ExxonMobil left its quarterly dividend unchanged at $0.75 per share ahead of earnings on Wednesday and it has not raised its dividend since the second quarter of 2014. Dividend distributions for the quarter totaled $3.1 billion.
Rex Tillerson, CEO of ExxonMobil, said “While our financial results reflect a volatile industry environment, we (ExxonMobil) remains focused on business fundamentals, cost discipline and advancing selective new investments across the value chain to extend our competitive advantage.”
The U.S. crude prices rebounded as much as 85% from the lows of January through the end of the second quarter. The amount of gasoline sitting in storage in the U.S. is about 15% above the five-year average. As a result, the firm expects weak profit margins from refining crude oil into gasoline to persist at least through the spring of 2017.