Left Menu
Development News Edition

Exxon posts second straight quarterly loss on demand, price plunge

BP has signaled an up to $17.5 billion hit. The COVID-19 pandemic slashed oil prices, sending Exxon's oil and gas production business to a loss.

Reuters | Updated: 31-07-2020 17:38 IST | Created: 31-07-2020 17:38 IST
Exxon posts second straight quarterly loss on demand, price plunge

Exxon Mobil Corp reported a $1.1 billion loss for the second quarter on Friday, the first back-to-back quarterly loss for the U.S. oil giant in at least 36 years.

Exxon stood out among its supermajor peers for not taking a large writedown on the value of its assets as the industry outlook darkens on the future of oil and gas prices. Chevron Corp, Total, Royal Dutch Shell, and Eni wrote down billions of dollars in assets. BP has signaled an up to $17.5 billion hit.

The COVID-19 pandemic slashed oil prices, sending Exxon's oil and gas production business to a loss. Its refining businesses was hit by a fall in demand, but an improvement in inventory valuations pushed overall refining profits into the black by nearly $1 billion. The U.S. oil major reported a loss of $1.08 billion, or 26 cents per share, in the three months ended June 30, compared with a profit of $3.13 billion, or 73 cents per share, a year earlier. (https://exxonmobil.co/30d059Q)

An adjusted loss of 70 cents per share missed Wall Street's estimate of 61 cents, according to Refinitiv. Oil and gas output fell 7% from a year earlier to 3.6 million barrels per day in the quarter as it curtailed output due to the oil price crash and threat that global oil storage would fill in May.

Prior to the pandemic, Exxon pursued an ambitious spending plan to boost oil output and turnaround sagging profits on a bet that a growing global middle class would demand more of its products. But CEO Darren Woods's plan to raise production and money by selling some assets has faltered and the company has slashed its capital spending plans for this year by 30%.

Exxon is preparing deeper spending and job cuts, according to people familiar with the matter, as it fights to preserve a 8% shareholder dividend. It said on Friday it had identified more potential cost cuts and was doing an "evaluation across the businesses on a country-by-country basis."


TRENDING

OPINION / BLOG / INTERVIEW

5G will be the key driving force for COVID-19 recovery: Here's how?

... ...

Canada’s COVID-19 pitfalls highlight need for integrated health information system

In the globalized world of today where outbreaks can spread far and wide within a matter of days, a global-level integrated health information system is ideal but Canadas provincial barriers show that the country lags much behind in deployi...

Pandemic must be impetus, not obstacle, for clean water access

To make matters worse, there are suspicions that the inadequacy of wastewater treatment methods in California, the rest of the USA, and indeed around the world may help to propagate the disease even more widely. ...

3D printing and the future of manufacturing post COVID-19

The on-demand, customizable, and localized manufacturing of product components facilitated by 3D printing has the potential to redefine manufacturing but there are certain technical, mechanical, and legal limitations that, unless ...

Videos

Latest News

UN rights experts express ‘outrage’ at Belarus police violence against peaceful protesters

Large numbers of protesters have been detained, and the experts have called on the international community to put pressure on the eastern European nation, where longtime authoritarian leader Alexander Lukashenko has ruled since 1994, to sto...

Mets ride Nido’s 6 RBIs to down Nats

Tomas Nido hit a two-run homer and a grand slam in consecutive at-bats as the New York Mets recorded an 8-2 victory over the visiting Washington Nationals on Thursday afternoon to salvage a split of the four-game series. Nido helped the Met...

WHO chief calls for solidarity in financing, ensuring equal access to future COVID-19 vaccine

With the ripple effects of the pandemic upending peoples lives, WHO Director-General Tedros Adhanom Ghebreyesus said that to move forward, the best bet is to do it together, as he briefed reporters from Geneva on the latest developments.Pha...

Fortnite maker sues Apple, Google after removal of game from app stores

Apple Inc and Alphabet Incs Google on Thursday removed popular video game Fortnite from their app stores for violating the companies in-app payment guidelines, prompting developer Epic Games to file federal antitrust lawsuits challenging th...

Give Feedback