Exxon Mobil’s profits fell dramatically in the third quarter as the company was hurt by lower prices for crude oil and natural gas.
The Texas oil giant reported $3.17 billion in profits in the third quarter, down 49 percent from the same time last year.
Total revenue was $65.05 billion, down 15 percent from the same time last year.
Oil prices have suffered due to a prolonged trade war between the U.S. and China, which has raised concerns about a global economic slowdown.
Natural gas prices have also been low as a glut of the fuel in the U.S. floods the market.
Despite falling prices, oil production rose 3 percent to 3.9 million barrels per day, driven primarily by growth in the Permian Basin. Production in the Permian was up 72 percent compared with the same time last year, the company said.
“We feel really good about the volume growth that we see out there,” said Neil Hansen, vice president of investor relations, on a conference call with investors. “The resource continues to respond very well.”
Outside the U.S., Exxon had five significant deep-water discoveries in Guyana and Cyprus during the quarter.
The company earned 75 cents per share, down 49 percent from a year ago, which beat expectations of analysts polled by FactSet, who were expecting 69 cents per share. Its profits were helped by a favorable tax-related item of about $300 million.
Exxon’s share price was up 2 percent to $68.88 in mid-morning training.