Exxon Mobil profit beats Street as oil prices move higher

(FILES) This file photo taken on February 01, 2008 shows an Exxon gas station in Burbank, California. ExxonMobil reported April 28, 2017 that first-quarter earnings more than doubled as increased oil prices translated into higher profits after a lengthy slump.Net income for the quarter ending March 31 surged to $4.0 billion, up 122 percent from the same period of 2016. Revenues rose 30 percent to $63.3 billion. / AFP PHOTO / GETTY IMAGES NORTH AMERICA / DAVID MCNEW

HOUSTON: Exxon Mobil Corp, the world’s largest publicly traded oil producer, posted a better-than-expected quarterly profit on Friday, helped by rising crude prices and cost cuts.

The results reflected the slowly improving dynamics for the company as well as the global energy industry, with oil prices up more than 50% since early 2015.

Still, pockets of weakness remained. Exxon’s US oil and gas division posted a loss. Plant repair costs pushed earnings down in the company’s chemical division, which had kept Exxon profitable during the two-year oil price downturn.

Net income jumped to US$4.01bil (RM17.4bil), or 95 cents per share, from US$1.81bil (RM7.9bil), or 43 cents per share, in the year-ago quarter.

Analysts expected earnings of 85 cents per share, according to Thomson Reuters I/B/E/S.

Production fell 4% to 4.2 million barrels of oil equivalent per day.

The company gobbled up acreage and reserves across the globe during the quarter, with deals in Texas and Mozambique, part of a plan to expand Exxon’s growth potential.

Exxon raised its quarterly dividend this week by 3 percent.

Shares of Texas-based Exxon rose 1.6% to US$82.60 in premarket trading. - Reuters