(Boursier.com) — ExxonMobil , the American oil giant, indicated yesterday that it would write down approximately $2.5 billion of California assets in the fourth quarter and also specified that the drop in energy prices would reduce its operating profit. Operating profit could fall to around $8.9 billion, down 30% year-on-year. Exxon said oil and gas properties along the Southern California coast are expected to experience depreciation ranging from $2.4 billion to $2.6 billion. Energy startup Sable Offshore agreed more than a year ago to pay $643 million for the assets. Ongoing challenges in the state’s regulatory environment have hampered progress in resuming operations, the group lamented. Oil majors are turning away from California due to mature oil fields and the state’s environmental policies…
Exxon also indicated its intention to take a writedown of approximately $250 million in its chemicals business. Lower oil prices affected profits by $600 million, but this was partially offset by rising natural gas markets. The $1.6 billion decline in refining profits was partly offset by a $1.2 billion gain in derivatives.
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