ExxonMobil feels massive Q4 losses

ExxonMobil 2015 profits slid by 50% from the previous year’s USD 32.5 billion to USD 16.2 billion as its US upstream segments depreciate due to the low price of oil, the super-major announced today.

The company’s upstream sector made USD 7.1 billion, down USD 20.4 billion compared to the previous year due to the low price of commodities. Notably, the upstream business in the US recorded a Q4 loss of USD 538 million, with international upstream dropping USD 2.6 billion to USD 1.4 billion.

Despite the upstream sector tipping the boat, the company raised production and its downstream and chemical segments did fairly well.

The company saw a total output of 4.1 million boe in 2015, a rise of 3.2% compared to the previous year. In particular, liquids grew 11% to 2.3 million barrels per day as projects reaching completion were offset by natural field declines.

Natural gas output failed to follow suit, dropping 17.8 mcm (630 mcf) to a total of 297 mcm (10.5 bcf) per day due to regulations in the Netherlands and field declines.

The exploration budget was cut 19% to USD 31.1 billion, and the company intends to drop it another 25% to USD 23.2 billion this year.

Exxon’s results follow super-majors Chevron and BP, which recorded massive losses in their Q4 due to a 72% drop in crude oil prices over the last 19 months. While Exxon’s peers have recorded massive downsizing and cutting capital investment, the largest of the companies has stayed afloat with its large refining and chemical dealings.