Exxon Profit Up 6% in Quarter; Texaco Income Plummets 46%

Exxon, the world’s largest oil company, reported Friday that its third-quarter earnings rose 6% as higher profit margins on petroleum products offset the effect of lower crude prices on exploration and production results.

Meanwhile, Texaco, the third-largest U.S. oil company after Exxon and Mobil, said its third-quarter earnings fell 46% and blamed “the turmoil in world petroleum markets.”

Exxon, headquartered in New York, earned $1.05 billion, or $1.46 a share, in the third quarter, compared to $995 million, or $1.33 per share, in the same period last year. Third-quarter revenue dropped 23% to $17.18 billion.

The company said the slump in operating earnings reflected a drop in crude oil prices averaging more than 50% that was only partially offset by stronger petroleum product and chemical margins.

Texaco, based in White Plains, N.Y., had third-quarter earnings of $162 million, or 67 cents a share, down from $301 million, or $1.26 a share, in the same quarter last year. Revenue decreased 35% to $7.3 billion.

“The company’s third-quarter earnings reflected the turmoil in the world petroleum markets,” said Texaco Chairman John McKinley, who cited the inventory surplus created by excess crude production earlier this year that held down petroleum prices.