ExxonMobil FY16 earnings halved amid low commodity prices

ExxonMobil FY16 earnings halved amid low commodity prices

ExxonMobil (NYSE:XOM) announced reduced earnings for FY16 of US$7.8 billion compared with 2015 in its latest figures.

The US oil company’s earning were almost half the $16.2 billion reported a year earlier, Exxon said it was a result of lower commodity prices and refining margins.

Fourth quarter earnings were also down on the same period last year, $1.7 billion from $2.8 billion, however this included a $2 billion impairment charge.

“ExxonMobil demonstrated solid operating performance in 2016. Financial results for the year were negatively impacted by the prolonged downturn in commodity prices and the impairment charge,” said Darren W. Woods, chairman and chief executive officer. “The company’s continued focus on fundamentals and our ability to leverage an attractive global portfolio through our integrated business ensures we are well positioned to generate long-term shareholder value.”

The multinational added 250,000 oil-equivalent barrels per day (OEBPD) to production capacity in 2016 thanks to five major upstream projects in Australia, Kazakhstan and the US.

ExxonMobil made three ‘important’ new discoveries in Guyana, Nigeria and Papua New Guinea and expanded its exploration portfolio through securing 16 exploration blocks.