Due to the decline in the price of oil by more than 50 percent in the past year, the American petroleum giants Exxon and Chevron in the third quarter grew at a sharp decline in profits.
Profits Exxon Mobil, the world's largest oil company by market value, fell in the third quarter to 47 percent, to 4.24 billion u.s. dollars, while in the same period of the last year's earnings amounted to 8.07 billion dollars. The result is that the falling price of oil on world markets for more than 50 percent due to excessive supply in relation to the weak demand, which has been under pressure because of a slowdown in the growth of the global economy, primarily Chinese, the world's largest consumer of raw materials.
According to a business report, published on Friday, earnings from Exxon exploration and oil production has dropped with the 5.1 to 1.4 billion dollars. On the other hand, the company's profits from the oil processing almost doubled compared to the same period of lanjsko, reaching the $ 2 billion. Specifically, due to a sharp decline in prices of ' black gold ', now the refinery can build upon considerably cheaper oil and generate greater profits on fuel.
Despite the declining earnings, Exxon is in the business, the report said that it will not reduce the investment this year, nor has the need for restructuring. On the other hand, the second largest u.s. oil producer Chevron announced a reduction in investment and the lifting of about 10 per cent of the jobs.
Chevron on Friday reported the previous quarter of record profit of 2.04 billion dollars, while in the same period last year, achieved the earnings from 5.59 billion dollars. Therefore, it is the company's management has announced a reduction in the budget for projects in the next year by 25 percent, to 25 to 28 billion dollars. The company estimates that it will, and in 2017. and 2018. year to reduce costs, and announced and the abolition of between 6000 and 7000 jobs.
Despite a sharp decline in profits, the results and the Exxon and Chevron are better than what analysts in a survey by Reuters expected, so the Friday stock prices, these oil Giants on Wall Street have risen.
Source/N1