New York, February 1 (FinanceEnquiry.com) - Despite reduced production volumes, Exxon Mobil Corp (NYSE: XOM) reported net profit of $9.4 billion in the fourth quarter or $1.97 a share, up 2 percent from $9.25 billion or $1.86 a share in the same period in 2010, before the market opened Tuesday. Analysts had anticipated earnings of $1.96 a share. Revenue of the company went up 15 percent to $121.6 billion.

Earnings for the full year were $8.43 per share against analysts’ expectations of annual earnings of $8.42 per share. In midday trading, Exxon shares were down 2 percent. Exxon’s results indicated higher oil prices which went up 25 percent in the quarter. However, in spite of the declining global oil supplies, the oil industry has not been able to increase production. In the quarter under review, oil-equivalent production dropped 9 percent although for the full year, it increased 1 percent.

The company reported that oil exploration and production accounted for an increase in earnings of 18 percent to $8.8 billion in the quarter. However, earnings dropped $1.4 billion due to lower volumes and a negative impact from Exxon’s production mix. Overall production was hit by entitlement volumes, which indicate payments made to governments and other partners, and other quotas. Exxon is increasing its focus on natural gas in order to develop unconventional energy sources in the U.S. although prices for natural gas have fallen more than 25 percent in the fourth quarter.