Exxon Corp reported a 37 pct drop in first quarter profits to 1.07 billion dlrs citing lower oil and gas prices. The company said profits in the lastest quarter included a 26 mln drl restructuring gain from divestment of certain gold operations overseas while last years first quarter profit of 1.71 billion dlrs included the initial charge of 235 mln dlrs for its 1986 corporate reorganization. First quarter revenues were down 13 pct to 19.44 billion dlrs. One time items aside Exxon said its first quarter results were stronger than 1986s final quarter which included several large asset sales and positive inventory adjustments. It said earnings per share declined 36 pct reflecting the companys continued purchases of its own common for the treasury. During the first quarter 5085000 shares were acquired at a cost of 416 mln dlrs compared with 3132000 in 1986s fourth quarter. Commenting on the first quarter Exxon said crude oil prices strengthened moderately within the quarter and were higher than a year ago at the end of the quarter. However average crude prices for the quarter were below the year ago period leading to lower earnings for exploration and production operations Exxon said. Also contributing to reduced earnings were lower natural gas prices primarily overseas representing contract adjustments representing contract adjustments tied to falling product prices in 1986 the company said. During the first quarter the company said intense competition in both domestic and international markets served to depress margins for refined products. Exxon said the lower product margins resulted in significantly reduced earnings for refining and marketing operations contrasting sharply with the unusually strong margins prevailing in the first qtr of 1986. It said savings from efforts to control costs and improve efficiency helped soften the negative impact of lower oil and natural gas prices. Exxon said earnings from chemicals and power generation activities showed consideratble improvement remaining strong throughout the period.
EXXON <XON> NET DROPS ON LOWER OIL, GAS PRICES