ExxonMobil earnings fell sharply in the first quarter as the big drop in oil prices crimped the petroleum giant’s exploration and production results, the company said Thursday.
Earnings fell 45.7 percent to $4.9 billion. Revenues dropped 36.4 percent to $67.62 billion.
The drop reflected the effects of a big retreat in oil prices since June 2014, which has led to a difficult year-on-year comparison for energy companies.
Exxon’s upstream division, which drills and produces petroleum prospects, saw profits sink 63.3 percent to $2.9 billion.
The hit from lower commodity prices more than offset the benefit from slightly higher output due to new developments in Papua New Guinea, Angola and other countries.
On the positive side, earnings from Exxon’s refining segment more than doubled to $1.7 billion thanks to cheaper costs for crude oil.
“ExxonMobil’s balanced portfolio delivered solid financial results in the quarter,” said chief executive Rex Tillerson.
“Regardless of current market conditions, we remain focused on business fundamentals and competitive advantages that create longterm shareholder value.”
On Wednesday, the oil giant announced it was raising its dividend by four cents to 73 cents per share. Exxon previously announced it would trim capital spending over the next few years due to low oil prices.
The earnings translated into $1.17 per share, well above the 83 cents projected by analysts.
Exxon shares rose 1.3 percent in pre-market trade to $89.05.