Exxon Mobil sees drop in profits

US oil giant Exxon Mobil has reported a 23% drop in profits, but the result was better than many analysts had expected.Exxon made a net profit of $6.05bn (£3.8bn) in the fourth quarter of 2009, compared with the $7.82bn it made in the same period in 2008. Weak demand for fuel in the global economic slowdown hurt the company's refining business. In the whole of 2009, Exxon made a profit of £19.28bn, less than half of what it made in 2008. Shares in Exxon Mobil rose 1.9% to $65.67 when trading began in New York. Last week, Chevron reported a 37% drop in quarterly profit. Fellow oil giants BP and Royal Dutch Shell also have figures out later this week. Better productionExxon said exploration and capital spending rose by 4% in 2009. "Our financial strength provided us with the foundation to continue investing in new energy supplies to help meet global energy demand and to fuel economic growth," said Exxon chairman Rex Tillerson. "Capital and exploration spending was $27.1bn in 2009, another record year, and in line with our longer-term plan." Oil and gas production increased nearly 2% in the fourth quarter, which was better than some analysts had forecast, while revenues rose 6% to $89.84bn. "The two things I like to see drive an earnings beat are better production and better margins," said Phil Weiss, oil analyst at Argus Research. "They certainly got the production."

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