Chevron Corporation recorded its biggest quarterly drop since the year 2001 on 29th July whereas Exxon Mobil Corporation recorded a 59% drop in profits, even as crude oil prices tumbled and disturbed the entire energy industry. The poor results recorded by two of the globe’s biggest producers of oil have come at a time when the energy sector is striving hard to survive in view of dropped prices.
According to financial experts and analysts, this is a very difficult period for one of the world’s biggest oil producing company and they will have to look at managing cash flows as well as focus on executing projects.
It must be noted that the executives at Exxon chose to defend their organization’s business strategy and model and indicated that they possess the financial strength to pursue a number of goals such as acquiring large companies and still give out dividends to their shareholders.
Exxon, the largest public trading oil producing company upset the Wall Street even as it did not register quarterly gains as expected. This sent the company’s share prices down by around 4.5% on Friday. The company’s profit from gas and oil production dropped by around 85% to reach 294 million dollars.