World energy giant Exxon Mobil reports sharp drop in Q4 profit

Exxon Mobil Corporation, one of the world's largest oil producers, has reported $1.7 billion profit for the fourth quarter of 2016, a 40 per cent decline from the same period in 2015.

The company on Tuesday said the earnings included the impairment charge recorded during the period, Xinhua news agency reported.

Excluding the impairment charge of $2 billion, earnings of $3.7 billion were up from the $2.8 billion reported in the fourth quarter of 2015, due to higher liquids realisations partly offset by weaker refining margins.

The drop in the fourth quarter profit capped the company's weakest year since 1998, and the company blamed this decline on the long slump in oil and gas prices and the $2 billion write-down.

In 2016, the company earned $7.84 billion, the company's smallest full-year profit since 1998, when it earned $6.44 billion.

Darren W. Woods, Chairman and Chief Executive Officer of Exxon Mobil, said financial results for the year were negatively impacted by the prolonged downturn in commodity prices and the impairment charge.

"The company's continued focus on fundamentals and our ability to leverage an attractive global portfolio through our integrated business ensure we are well positioned to generate long-term shareholder value," he said.

--IANS

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