Credit: Reuters/Brendan McDermid

LONDON  – Goldman Sachs downgraded ExxonMobil (XOM.N) to “sell” following disappointing fourth-quarter results, as the Wall Street bank forecasted the oil and gas company will meet only half of its targeted returns by 2025. (emphasis added)

Irving, Texas-based Exxon’s results missed Wall Street’s recently lowered estimates, with earnings sliding to $5.6 billion(4.27 billion pounds) from $6 billion a year ago as weak oil and gas prices, sliding refining and chemicals profit margins offset a sharp increase in oil and gas production.

Exxon CEO Darren Woods described the margin weakness as “a short-term impact”.

But Goldman said its decision to downgrade Exxon from “neutral” stemmed from “lack of free cashflow limiting capital returns, and risk to long-term return on capital employed (ROCE)targets”.

Goldman lowered Exxon’s share price target from $72 to $59. […]