Exxon, the largest American oil company, pays for the collapse in oil prices: in the fourth quarter of 2015 it recorded a 58% drop in profits, the worst result since 2002, even if the decline was less than Wall Street expected. The Irving, Texas-based group posted earnings of $2,78 billion, or 67 cents a share, compared with $6,57 billion, or $1,56 a share in the same period in 2015. The consensus was set at 63 cents per share.
This is the worst profit recorded since 2002 ed it's the first time it's dropped below $3 billion, always from that year. In terms of revenues, they fell 31% to $59,81 billion. Analysts were expecting $51,36 billion. Profits in research and manufacturing fell to $857 million from $5,47 billion in 2014.
Things didn't go any better for the British group British Petroleum (BP) recorded a collapse in profits (-91%) in the fourth quarter of last year: BP's profits amounted to 196 million dollars against 2,24 billion in the same period of the previous year. Despite cost-cutting efforts, the collapse in oil prices is putting UK society in jeopardy. “We continue to move rapidly – said the managing director Bob Dudley – to adapt to the ever-changing scenario. We are making progress in managing and reducing costs and investments”. British Petroleum plans to cut 4.000 jobs in 2016 and another 3.000 from the end of 2017. Despite the confirmation of the dividend at ten cents per share, the market punishes the BP share with a drop of about 7% on the London Stock Exchange.
