ExxonMobil profits plunge on low oil prices

ExxonMobil reported Friday that second-quarter earnings plunged nearly 60 percent due to low oil prices and weak refining margins.

Earnings came in at $1.7 billion, down 59.4 percent from the level a year ago.

Revenues were down 22.2 percent to $57.7 billion.

The results again showed the effects of the oil-price bust, which mean ExxonMobil must sell the oil it extracts from the ground at a lower price than during the year-ago period.

ExxonMobil also suffered much lower profits from refining, which processes crude oil into gasoline and other petroleum products.

Large inventories of refined fuels have hurt the business, which has sometimes lifted the company’s profits during the two-year slump in oil prices.

Refining profits fell 45.2 percent to $825 million.

“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,” ExxonMobil chief executive Rex Tillerson said.

The company’s earnings translated into 41 cents per share, far below the 64-cent analyst estimate.

Shares fell 2.6 percent to $87.90 in pre-market trade.