**Exxon Mobil Reports Lowest Profit in Four Years Amid Oil Price Decline**
Exxon Mobil’s second-quarter earnings have fallen to their lowest level in four years, with profits and sales declining as oil prices dropped due to increased production from OPEC. Despite this downturn, the Texas-based oil giant exceeded Wall Street’s profit expectations, leading to a slight rise in its stock before the market opened, even as global markets faced volatility from unpredictable U.S. trade policies.
For the quarter ending June 30, Exxon reported a profit of $7.08 billion, or $1.64 per share, down from $9.24 billion, or $2.14 per share, in the same period last year. While this performance surpassed analysts’ expectations, Exxon does not adjust its reported results for one-time events like asset sales. Analysts from Zacks Investment Research had anticipated earnings of $1.49 per share.
Chairman and CEO Darren Woods emphasized the effectiveness of Exxon’s strategy, stating, “The second quarter, once again, proved the value of our strategy and competitive advantages, which continue to deliver for our shareholders no matter the market conditions or geopolitical developments.”
Revenue for the quarter fell to $81.51 billion from $93.06 billion, missing Wall Street’s forecast of $82.82 billion. In comparison, Chevron Corp also reported a second-quarter profit of $2.49 billion, or $1.45 per share, with adjusted earnings of $1.77 per share, marking a four-year low for the company as well. Chevron’s quarterly revenue reached $44.82 billion, falling short of analysts’ expectations of $1.70 per share.
In a related development, eight members of the OPEC alliance announced plans to increase production by 548,000 barrels per day in August, a move that could further lower gas prices this year. They cited a “steady global economic outlook” and low oil inventories as reasons for this decision. Oil prices had surged in June amid the conflict between Israel and Iran but subsequently fell after the U.S. facilitated a peace agreement following military actions against key Iranian nuclear sites.
**FAQ**
**What factors contributed to Exxon’s profit decline in the second quarter?**
Exxon’s profit decline was primarily driven by falling oil prices due to increased production from OPEC, alongside a significant drop in revenue compared to the previous year.
