World energy giant Exxon Mobil reports sharp drop in Q4 profit

Exxon Mobil Corporation, one of the world's largest oil producers, Tuesday reported 1.7 billion U.S. dollars in profit for the fourth quarter of 2016, a 40-percent decline from the same period in 2015.

The company said in a statement Tuesday that the 1.7 billion dollars earnings in the fourth quarter included the impairment charge recorded during the period. Excluding the impairment charge of 2 billion dollars, earnings of 3.7 billion dollars were up from the 2.8 billion dollars reported in the fourth quarter of 2015, due to higher liquids realizations partly offset by weaker refining margins.

The 40-percent drop in fourth-quarter profit capped the company's weakest year since 1998, and the company blamed this decline on the long slump in oil and gas prices and the 2 billion dollars write-down.

In 2016, the company earned 7.84 billion dollars, the company's smallest full-year profit since 1998, when it earned 6.44 billion dollars.

Darren W. Woods, chairman and chief executive officer of Exxon Mobil, said that financial results for the year were negatively impacted by the prolonged downturn in commodity prices and the impairment charge.

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