Exxon Mobil Corp and Chevron Corp, two of the world’s largest oil producers, reported quarterly profit that fell far short of Wall Street’s expectations.
The disappointing results come as much of the U.S. oil industry has been recovering from a three-year downturn in the energy sector, bolstered by higher production and crude prices.
As pre market report, Exxon called the quarter a “challenging” one for its operations and “well below market expectations.” Despite rising oil prices, Exxon’s production dropped 7 percent and it spent more than $600 million to upgrade refineries in France, Canada, Texas and Saudi Arabia.
At Chevron, oil production rose 2 percent and profit spiked, but higher corporate expenses surprised Wall Street. Still, the company announced a $3 billion stock buyback program, long awaited by Wall Street.
