Exxon Mobil hasn’t written down the value of its assets despite the steep drop in oil prices, and now, the New York Attorney General has launched a probe. Fred Katayama reports.
Exxon probed over accounting
Exxon Mobil’s accounting practices under investigation. The Wall Street Journal reports New York Attorney General Eric Schneiderman is looking into why the oil giant hasn’t written down the value of its assets despite the sharp plunge in oil prices.
The 60-percent-plus drop in crude prices since mid-2014 has forced every major oil producer to write down the value of their assets. But Exxon hasn’t taken any write downs. Investment bank Jefferies has estimated that roughly 8 percent of the net assets of integrated oil companies in 2014 has been impaired since the start of that year.
Exxon and the New York AG’s office were not immediately available for comment.
The Journal notes that Exxon’s ability to avoid write-downs has helped its shares vastly outperform its rivals since mid-2014. Those shares fell in early trading Friday.