Exxon Mobil Corp., the world's biggest oil company, on Thursday posted its Q2 results for 2007. The company reported its first profit decline in more than three years after the natural gas prices dipped and production dropped.
Announcing the second-quarter results, the world's largest publicly traded oil company said its net income fell to $10.26 billion from $10.36 billion it earned in the same period of 2006. However, per-share profit increased from $1.72 a share to $1.83 a share.
A slight decrease in the net quarterly profit in comparison to the same quarter last year was reported due to the lower natural gas prices and a drop in production.
“Lower natural gas realizations were mostly offset by higher refining, marketing and chemical margins,” said Exxon Mobile's Chairman Rex W. Tillerson while announced the result for the April-June period.
Earnings per share rose because the number of Exxon's outstanding shares dropped nearly 7 percent on the market through the company's ongoing stock buyback program.
Revenue dipped 0.7 percent to $98.35 billion from $99.03 billion a year ago, the oil company reported.
Although, the profit decline was the first for Exxon Mobil since the first quarter of 2004, it was still the fourth-best quarterly result for an American company-ever.
The company, though, missed the forecast of $1.96 a share earnings by analysts polled by Thomson Financial, its revenue surpassed the prediction of $97.6 billion.
Despite fall in Exxon’s U.S. refining output by 128,000 barrels a day, compared with the second quarter of 2006, its refining and marketing profit soared 37 percent. Refining and marketing profit also jumped 42 percent and 38 percent at Royal Dutch Shell Group and ConocoPhillips Co. respectively.
Shares of Exxon Mobil fell $4.56, or 4.9 percent, to $88.23 in New York Stock Exchange composite trading on Thursday.
Headquartered in Irving, Texas, a suburb of Dallas, USA, Exxon Mobil is the world's largest integrated oil company, ahead of BP and Royal Dutch Shell. Formed on November 30, 1999, by the merger of Exxon and Mobil, it has become the largest company in the world in market value, as of 2007, and the largest publicly traded company in the world as ranked by the Forbes Global 2000. It is also the largest company in the world by revenue, as ranked by Fortune Global 500.
The company deals in oil and gas exploration, production, supply, transportation, and marketing worldwide. It operates 40 refineries in 20 countries with a capacity of producing 6.4 million barrels per day.