ExxonMobil reported a 38 percent year-over-year drop in third quarter earnings on lower refinery margins and crude prices.
The company posted $2.65 billion in third quarter earnings, down from $4.24 billion in earnings during the year-ago period.
Third quarter earnings per common share fell 38 percent year-over-year to $0.63 per share.
Exxon said the earnings dip was tied to lower refining margins and commodity prices.
Total revenues and other income declined to $58.67 billion in the third quarter, down from $67.34 billion in the third quarter of 2015.
Upstream earnings declined $738 million year-over-year to $620 million in the third quarter.
U.S. upstream earnings fell to a loss of $477 million in the third quarter compared to a loss of $442 million in the year-ago period.
Non-U.S. upstream earnings declined to $1.097 billion in the third quarter, down from $1.8 billion in the third quarter of 2015.
Net worldwide crude oil, natural gas liquids, bitumen and synthetic oil production fell to 2.21 million barrels per day in the third quarter compared to 2.33 million bpd in the year-ago quarter.
Exxon’s worldwide natural gas production available for sale climbed to 9.601 billion cubic feet per day, up from 9.524 billion cubic feet per day in the third quarter of 2015.
Exxon’s oil-equivalent production dipped to 3.811 million barrels per day in the third quarter compared to 3.918 million barrels per day.
Downstream earnings declined by $804 million year-over-year to $1.2 billion in the third quarter.
U.S. downstream earnings fell to $225 million in the third quarter, down from $487 million in the year-ago quarter.
Non-U.S. downstream earnings were just over $1 billion in the third quarter, a $542 million decline from the prior-year period.
Chemical earnings dropped to $1.2 billion in the third quarter, a $56 million decline from the third quarter of 2015.
Capital and Exploration expenditures declined 45 percent year-over-year to $4.19 billion in the third quarter.
Exxon said in its third quarter results that, if the average crude prices seen during the first nine months of this year persist, certain quantities of oil “will not qualify as proved reserves at year-end 2016” under the Securities and Exchange Commission’s definition of proved reserves.
The Wall Street Journal reported in September that the SEC is looking into how Exxon calculates the potential business impacts of climate change and why the company has yet to write down the value of its reserves.
Exxon added that, if average prices seen this year hold, the projected end-of-field-life for estimating reserves will “accelerate for certain liquids and natural gas operations in North America” and result in a “reduction of proved reserves at year-end 2016.”
Exxon said that quantities it could be required to de-book as proved reserves on an SEC basis amount to about 3.6 billion barrels of bitumen at the Kearl project in Canada and about 1 billion oil-equivalent barrels in other North America operations.
“While the operating environment remains challenging, the company continues to focus on capturing efficiencies, advancing strategic investments, and creating long-term shareholder value,” ExxonMobil chairman and CEO Rex W. Tillerson said.