ExxonMobil sees 2015 earnings fall 50%, cuts 2016 spending by 25%

ExxonMobil Corp. plans to reduce its capital and exploration expenditures in 2016 by 25% compared with that of 2015 to $23.2 billion.

The company estimates earnings in 2015 totaled $16.2 billion, a 50% drop from the $32.5 billion earned in 2014. Capital and exploration expenditures were $31.1 billion, down 19% from the 2014 level.

Fourth-quarter earnings were $2.8 billion, down 58% from $6.6 billion in fourth-quarter 2014.

Full-year upstream earnings were $7.1 billion, down 75% from the $27.5 billion posted in 2014. ExxonMobil says lower realizations decreased earnings by $18.8 billion.

The US upstream segment in 2015 reported a $1.1-billion loss while upstream earnings outside the US were $8.2 billion.

Full-year production by the company totaled 4.1 million boe/d, up 3.2% year-over-year.

ExxonMobil’s downstream earnings of $6.6 billion in 2015 more than doubled that of 2014 due in large part to stronger margins. Chemical earnings were up slightly at $4.4 billion.