(Corrects year for capex cut)
By Anna Driver
Feb 2 (Reuters) - Exxon Mobil Corp on Tuesdayreported its smallest quarterly profit in more than a decade andsaid it will cut 2016 spending by one-quarter and suspend sharerepurchases as it copes with a prolonged downturn in crudeprices.
Shares of Exxon, the world's largest publicly traded oilcompany, fell 2.2 percent in premarket trading to $74.59, hit bya more than 4 percent slide in the price of crude oil.
Crude oil prices have dropped about 70 percent from the 2014high over $100 barrel. Current prices at around $30 barrel havetriggered a wave of spending cuts as oil companies slashinvestment in new wells and projects to conserve cash.
Exxon sees capital spending at around $23.2 billion thisyear, a 25 percent drop from 2015.
"While our financial results reflect the challengingenvironment, we remain focused on the business fundamentals,including project execution and effective cost management," RexTillerson, the chairman and chief executive officer, said in astatement.
In another move to conserve cash, Exxon suspended its sharebuyback plan in the first quarter. In the fourth quarter, Exxonpurchased 9.4 million shares for $754 million.
Oil analyst Brian Youngberg at Edward Jones in St. Louischaracterized Exxon's report as "relatively good, especiallywhen compared with BP's terrible results." He noted that Exxon'soil and gas output was better than expected and that the companyhad improved its operations this year.
Earlier Tuesday, BP Plc reported an annual loss of$6.5 billion, its largest ever. Smaller U.S. rival Chevron Corp last Friday also reported a net loss.
Irving, Texas-based Exxon reported that fourth-quarterprofit tumbled to $2.78 billion, or 67 cents per share, from$6.57 billion, or $1.56 per share, in the same period a yearearlier. The 2015 fourth-quarter profit was the smallest sinceSeptember 2002.
Analysts, on average, expected Exxon to earn 63 cents pershare, according to Thomson Reuters I/B/E/S.
Exxon said its oil and gas output rose 4.8 percent in thefourth quarter as it pumped more crude oil. (Reporting by Anna Driver in Houston; Editing by JeffreyBenkoe)
BP (BP.)
