Exxon Mobil announced on Tuesday that its fourth-quarter performance was impacted by declining oil prices and reduced refining margins.
The company reported that lower crude prices cut earnings in its production segment by approximately $700 million while shrinking refining margins caused an additional $500 million drop compared to the previous quarter.
Although Exxon’s guidance does not account for changes in operational performance or production levels, it clearly highlights the company’s challenges during the fourth quarter.
Natural gas prices increased by around $200 million, but falling chemical margins offset this. Investor sentiment has been dampened by concerns over China’s economic outlook and the ongoing global oil surplus.
On a positive note, Exxon expects to report a $400 million gain from asset sales in the fourth quarter, though an equal amount in associated fees will offset this.
Despite these factors, Exxon Mobil’s stock remained steady at $108.75.
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