Exxon's 4Q profit dips 16 percent to $8.35 billion


FILE - This Feb. 27, 2012, file photo shows gas prices at a Pittsburgh Exxon mini-mart. Exxon Mobil's fourth-quarter profit fell 16 percent as the company produced slightly less oil and gas and its refining business weakened, the company announced on Thursday, Jan. 30, 2014. (AP Photo/Gene J. Puskar, File) | Zoom

(AP) - Exxon Mobil's fourth-quarter profit fell 16 percent as the company produced slightly less oil and gas and its refining business weakened.

Exxon has been criticized for failing to boost production, but the CEO says that new projects now in the works will produce profits and lift the business.

Exxon Mobil Corp. said Thursday that fourth-quarter net income was $8.35 billion, or $1.91 per share, matching Wall Street's forecast. That compares with profit of $9.95 billion, or $2.20 per share, a year earlier.

Revenue fell 3.3 percent to $110.86 billion, below the $114.51 billion that analysts were expecting, according to a FactSet survey.

Production of oil and gas dropped 1.8 percent.

In a statement, Chairman and CEO Rex Tillerson said disciplined investing and new projects were putting the company in position for sustained big profits.

"Over the next two years, ExxonMobil will start up numerous major projects delivering profitable new supplies of oil and natural gas while strengthening our refining and chemicals businesses," he said.

The Irving, Texas-based company spent $26 billion last year on dividends and buybacks that reduced the number of shares _ moves designed to please shareholders.

As oil prices were stabilizing, Exxon's shares gained nearly 15 percent during 2013, about on par with Chevron Corp. but trailing the broader indexes, including the Dow Jones industrial average.

In trading before Thursday's opening bell, Exxon shares were down $1.18 to $93.93.

Exxon is the world's biggest publicly traded oil company. It became the largest producer of U.S. natural gas with the 2010 acquisition of XTO Energy, a deal that has failed to produce immediate results due to stubbornly low gas prices amid a surge in drilling.

In the fourth quarter, Exxon's earnings from oil and gas production in the U.S. fell 26 percent to $1.19 billion; outside the U.S. _ easily the company's most profitable business _ earnings dipped 9 percent to $5.6 billion.

The sharpest decline came in refining and selling petroleum products, where earnings plunged 48 percent to $916 million on weaker refining margins.

Exxon said it paid $23.11 billion in income, sales and other taxes, a decrease of 4.2 percent from the fourth quarter of 2012.


(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Top Stories

  • Seahawks Schedule
    The Seahawks have released the 2014 regular-season schedule

  • Save the Buses?
    A group is gathering signatures to save transit, but Michael Medved has another solution

  • 21 and Over
    If 21 is the legal age for alcohol and marijuana, why not cigarettes?
ATTENTION COMMENTERS: We've changed our comments, but want to keep you in the conversation.
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.
comments powered by Disqus
Sign up for breaking news e-mail alerts from MyNorthwest.com
In the community
Do you know a student who stands out in the classroom, school and community?
Help make their dreams come true by nominating them for a $1,000 scholarship and a chance to earn a $10,000 Grand Prize. Brought to you by KIRO Radio and Comprehensive Wealth Management.

Do you know an exceptional citizen who has impacted and inspired others?
KIRO Radio and WSECU would like to recognize six oustanding citizens this year. Nominate them to be recognized and to receive a $2,000 charitable grant.