ExxonMobil earnings plunge 47.5% to $4.2bn

New York - ExxonMobil reported a big drop in third-quarter earnings Friday as lower oil and gas prices weighed on its exploration and production business.

Earnings fell 47.5% to $4.2bn, with profits from the upstream division that finds and produces oil sinking to just $1.4bn from $5.1bn in the year-ago period.

Revenues fell 37.1% to $67.3bn.

The big drop in upstream earnings reflects the impact of about a 50% fall in oil prices from 2014 due to lofty global crude supplies and the uncertain outlook for demand.

ExxonMobil's troubles in upstream were offset somewhat by the gains in its downstream division, which buys oil to process into gasoline and other products. Earnings from refining and processing doubled to $2bn.

Chemical earnings were essentially flat at $1.2bn.

"Quarterly results reflect the continued strength of our downstream and chemical businesses and underscore the benefits of our integrated business model," said ExxonMobil chief executive Rex Tillerson.

The results translated into $1.01 per share, 12 cents above analyst expectations.

ExxonMobil shares rose 0.5% to $82.65 in pre-market trade.