July 29, 2016: Both Exxon Mobil Corp. (world’s largest publicly traded oil producer) and Chevron Corp.( second-largest U.S.-based oil producer,) failed to meet street’s expectations on Friday. Chevron Corp (CVX.N) reported its worst quarterly loss since 2001 on Friday and Exxon Mobil Corp (XOM.N) posted a 59 % slide in profit. Exxon’s $1.7 billion second-quarter profit was its lowest since the Q1 1999, before the Mobil Corp. acquisition. Chevron reported a shock loss of $1.47 billion, or 78 cents a share, compared with profit of $571 million a year earlier, after booking a $2.8 billion write-down on assets.
Chevron Chairman and CEO John Watson said “In our upstream business, we recorded impairment and other charges on certain assets where revenue from expected oil and gas production is expected to be insufficient to recover costs.” Exxon Mobil Chairman and chief executive officer Rex W. Tillerson reported “While our financial results reflect a volatile industry environment, ExxonMobil remains focused on business fundamentals, cost discipline and advancing selective new investments across the value chain to extend our competitive advantage. The corporation benefits from scale and integration, which provide the financial flexibility to invest in attractive opportunities and grow long-term shareholder value.”
Exxon shares slumped 2.3 % to $88.11 in New York. Chevron fell 0.2 % to $101.61.