A recent report indicates a decline in Exxon’s second-quarter profits, despite a surge in production. The company reported a net income of $4.19 billion in the second quarter, a stark 52 percent drop from $8.78 billion during the same period last year. This marks Exxon’s smallest quarterly profit since June 2009, a time when the country faced a recession and oil and gas prices had taken a serious hit.
Furthermore, the company’s revenue for the quarter which stands at $74.11 billion – a 33 percent drop from last year – represents the lowest the company has experienced since 2009. The downturn in global oil and gas prices has significantly impacted all players in the oil and gas industry, resulting in decreased revenue and profits and compelling most to slash investments in new ventures. In response to these challenges, Exxon reduced its capital expenditures by 16 percent in the quarter, totaling $8.26 billion.
For more details, refer to CBS Money Watch.
The photo is credited to drpepperscott230.
