ExxonMobil’s first-quarter profits dipped by 63% to $1.8 billion, it’s worst reported quarterly profit since 1999.
The company, the world’s largest publicly traded oil firm, said it was the “sharply lower commodity price” for oil that led to “challenging industry conditions” which impacted its business.
Exxon’s revenue slumped 39% in the first quarter to $48.7 billion as the company slashed capital spending by 33% compared to the previous year.
The company’s US exploration and production business suffered a deeper loss of $832 million.
Despite the profit plunge, Exxon’s earnings per share exceeded expectations, sending the stock slightly higher ahead of Friday’s opening bell.
The company is largely still profitable because of its diversified business model that includes running its own refining operations.
The company has fared well compared to oil giant Chevron which reported a loss of $725 million on Friday.
ExxonMobil isn’t all rainbows and butterflys, Standard & Poor’s stripped Exxon’s AAA rating– a perfect credit score it had since at least 1949.
Exxon showed it’s not worried about the S&P move by raising its dividend this week. It marks the 34th consecutive year of dividend hikes.
Exxon also said on Friday it will continue to buy back shares tied to its benefit plans.