Exxon shares are slumping pre-market, weighing down The Dow, after big misses in earnings and production.
The headline numbers were ugly:
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Exxon Q1 EPS 55c vs Wall Street estimate of 72c
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Exxon Q1 Production 3,981 Mboe/D, analysts forecast 4.01 Mboe/D.
And with net income at $2.35 billion, down a whopping 49% year-on-year, and a 61% drop from 4Q 2018, the picture is considerably worse than expected.
A lot of the under-peformance of Exxon at the start of the year is coming from its mighty downstream operation, with includes its refining arm. In Q1 2019, it reported a loss of $256 million in downstream, compared with a profit of $940 million in the Q1 2018.
In the press release, CEO Darren Woods says:
“Solid operating performance in the first quarter helped mitigate the impact of challenging Downstream and Chemical margin environments. In addition, we continued to benefit from our integrated business model. We are making strong progress on our growth plans and expect to deliver sustained value for our shareholders. The change in Canadian crude differentials, as well as heavy scheduled maintenance, similar to the fourth quarter of 2018, affected our quarterly results.”
XOM is down almost 3% in the pre-market, weighing down The Dow…
Given the recent surge in oil prices, this is not a great start to the energy complex earnings season.
via ZeroHedge News http://bit.ly/2vk9Piv Tyler Durden