The world’s largest oil company got the worst of 1999 profit

The American oil company, a world leader in its industry, ExxonMobil announced on Friday results for the first quarter of 2016. The net profit of the group fell in comparison with January—March last year, almost three times — from $4.9 billion to $1.8 billion, According to estimates by Bloomberg, the worst performance since 1999.

As the company explains, the reason for the fall in profit was the oil prices reaching minimum values at the beginning of this year and low margins in refining. Chemical division, by contrast, has consolidated its performance and brought the group almost all the income. Profit in this area grew by one third to $1.4 billion.

The direction of exploration and production (upstream) showed the greatest decline in its quarterly net loss was $76 million versus $2.9 billion in net profit in the same period last year. In the direction of refining and marketing (downstream), ExxonMobil’s net profit almost halved to us $906 million (against almost $1.7 billion in the first quarter of 2015).

For ExxonMobil this is the sixth consecutive quarterly decline in net profit, which has not happened since 2001-2002.

Previously wrote about the fact that industry experts expect by the end of the first quarter of weak reporting from virtually all of the leaders of the oil market. They predicted that ExxonMobil can demonstrate the worst quarterly results over the last 20 years.

April turned out to be for the world oil leader difficult month. In early April owned by the refinery in Texas (second largest in USA) has occurred a strong fire. This week rating Agency S&P for the first time since 1930 downgraded the credit rating of ExxonMobil from level AAA to AA+. As a result, the three largest and most stable non-financial companies in the U.S. turned into “two”, which left Microsoft and Johnson & Johnson.