ExxonMobil missed earnings expectations this morning, when it reported net income of $9.4 billion, or $1.97 per share. Analysts polled by Bloomberg had expected earnings per share of $1.98.The oil giant also missed revenue forecasts by nearly $3 billion, coming in at $121.6 billion during the fourth quarter.
“ExxonMobil recorded strong results while investing at record levels to develop new supplies of energy that are critical to meeting growing world demand, and supporting economic recovery and growth,” the company’s chairman Rex Tillerson said.
Capital and exploration costs during the period were $10 billion, while oil-equivalent production declined 9 per cent compared to the fourth quarter of 2010.
However, the company was bolstered by increases in its upstream revenue, which helped stem declines seen in downstream and chemicals operations.
International upstream earnings totaled $7.6 billion, up $1.5 billion from a year ago, while U.S. upstream fell 10% to $1.2 billion. Upstream results include results from the exploration and production of crude and natural gas.
The Irving, Texas, based company generated $10.7 billion in operating cash flow when excluding $6.9 billion from asset sales.
ExxonMobil was also the highest bidder on 50 blocks in the Gulf of Mexico, where it expects to expand as it continues to search for new energy reserves.
Earlier this month, oil services company Halliburton said that many refiners and drillers were returning to the Gulf’s deepest waters, as stigma associated with the BP Macondo disaster subsides.
Shares are 0.8 per cent lower in pre-market trading.