ExxonMobil profit falls in fourth quarter after hefty charges

Oil corporation ExxonMobil saw its quarterly earnings decline by 40% in the last three months of 2016, reflecting a $2bn impairment charge.

The largest oil company in the US reporting earnings of $1.68bn for the fourth quarter, compared to $2.78bn the same period a year ago. Earnings were hit by an upstream asset impairment charge of $2bn related to dry gas operations with undeveloped acreage in the Rocky Mountains region in the US. Excluding the impairment charge, earnings were $1.4bn, up $528m from the fourth quarter of 2015.

The group, however, revealed an increase in revenue to $61bn from $59bn the previous year, after previously recording nine consecutive declines due to slumping oil prices.

Former chief executive Rex Tillerson stood down during the period in order to take up the position as President Donald Trump's Secretary of State.

The company's net income fell to $1.68bn from $1.68bn, while earnings per share dropped to 41 cents from 67 cents.

Analysts had expected EPS of 70 cents, but were unaware of the impairment charge.

"ExxonMobil demonstrated solid operating performance in 2016. Financial results for the year were negatively impacted by the prolonged downturn in commodity prices and the impairment charge," said Darren Woods, new chairman and chief executive officer.

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