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Wednesday, April 17, 2019

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Exxon's 1Q profit falls 46 percent amid decline in oil price

Exxon's 1Q profit falls 46 percent amid decline in oil price

IRVING, Texas (AP) — Lower oil prices pushed Exxon Mobil Corp.'s first-quarter profit down 46 percent, but the results still beat Wall Street expectations.

Exxon said Thursday that it earned $4.94 billion — a huge sum but the weakest first quarter for the oil giant since 2009. A year earlier, Exxon earned $9.10 billion.

When world oil prices collapsed from about $100 a barrel to less than $50 over the second half of last year, it made some drilling projects unprofitable. Exxon is beginning to cut costs — the company said last month that it would trim capital spending this year by 12 percent, to $34 billion, and the CEO expects relatively low oil prices to stick around.

Fundamental changes could be necessary because industry officials don't expect energy prices to surge anytime soon. Exxon CEO Rex Tillerson said at an industry conference last week that low prices are "going to be with us for a while."

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