ExxonMobil earnings plunge on lower commodity prices

ExxonMobil reported a big drop in third-quarter earnings Friday due to lower crude oil prices and weaker returns in its refining business.

Net income was $2.7 billion, down 37.5 percent from the year-ago period as the two-year oil slump again weighed on results. Revenues fell 12.9 percent to $58.7 billion.

Earnings fell sharply in both Exxon's upstream division, which explores for and produces crude oil and natural gas, and its downstream division, which processes crude into gasoline and other petroleum products.

Exxon also notched a modest decline in chemical earnings.

"While the operating environment remains challenging, the company continues to focus on capturing efficiencies, advancing strategic investments and creating long-term shareholder value," said chief executive Rex Tillerson.

Petroleum company earnings have been under pressure since oil prices began retreating in 2014. Oil prices have stabilized in recent months, but the benefits have yet to materialize in industry earnings.

Exxon's results translated into 63 cents per share, five cents above analyst expectations.

ExxonMobil shares fell 1.2 percent to $85.87 in pre-market trade.