The profit margins of many oil companies have reduced drastically and unfortunately, neither Exxon Mobile nor Chevron has been exempted from this loss.
The United States of America’s largest oil-producing company, Exxon Mobil has seen a reduction in profit of more than 5% in the fourth quarter of 2019 as there has been a significant decrease in the prices of natural gas. Exxon Mobil announced its profit of $5.69 billion/$1.33 per share which was considerably lower to what analysts originally predicted.
Chevron also announced its profit which was 36% less in the 3rd quarter, they also seemed to be affected by similar obstacles as Exxon Mobil with lower gas prices, refining margins and oil prices. Chevron further announced a loss of $6.6 billion/$3.51 per share for its fourth quarter, which was chevron’s largest quarterly loss ever.
The chairman and CEO of Exxon Mobil, Darren Woods said the depressed margins were a result of excess capacity.
There is no denying that 2019 was a difficult year for many oil companies.
