Exxon Mobil profits drops in 2009

U.S. oil giant Exxon Mobil reported a 23% decline in profits expected but the result was better than many analysts had.

Exxon reported net income of $ 6.05bn (£ 3.8 billion) in the fourth quarter of 2009, compared with $ 7.82bn in the same period it made in 2008.

Weak demand for fuel in the global economic slowdown hurt the company’s refining business.

In the whole of 2009 Exxon made a profit of £ 19.28bn, less than half of what it did in 2008.

Shares of Exxon Mobil rose 1.9% to $ 65.67 when trading began in New York.

Last week, Chevron reported a 37% decline in quarterly profit. Fellow oil giants BP and Royal Dutch Shell also figures out later this week.

Better Production

Exxon said exploration and investment spending rose by 4% in 2009.

“Our financial strength will help us with the foundation to continue investing in new energy, to propel the challenges of global energy demand and economic growth,” said Exxon Chairman Rex Tillerson.

“Capital and exploration expenditures amounted to 27.1bn in the year 2009 was another record year, and in line with our long-term plan.”

Oil and gas production increased by about 2% in the fourth quarter, which was better than some analysts had forecast, while sales increased by 6% to $ 89.84bn.

“The two things I want to see that a win is going to beat a better production and better margins,” said Phil Weiss, oil analyst at Argus Research. “They certainly have the production.”