A view of the Exxon Mobil refinery in Baytown, Texas.Jessica Rinaldi | ReutersExxon Mobil on Friday reported its third straight quarter of losses a
A view of the Exxon Mobil refinery in Baytown, Texas.
Jessica Rinaldi | Reuters
Exxon Mobil on Friday reported its third straight quarter of losses as depressed oil demand sparked by the coronavirus pandemic weighed on the corporate’s operations.
In the course of the third quarter, the corporate misplaced $680 million, though Exxon stated outcomes improved on a quarter-over-quarter foundation due to “early phases of demand restoration.”
On an adjusted foundation, Exxon misplaced 18 cents per share throughout the quarter whereas producing $46.2 billion in income. The Avenue was anticipating a 25 cent loss per share and $46.01 billion in income, based on estimates from Refinitiv.
A yr earlier, the corporate earned 75 cents per share on $65.05 billion in income. In the course of the second quarter of 2020, Exxon misplaced 70 cents per share on an adjusted foundation, whereas income got here in at $32.61 billion.
“We stay assured in our long-term technique and the basics of our enterprise, and are taking the required actions to protect worth whereas defending the steadiness sheet and dividend,” Chairman and CEO Darren Woods stated. “We’re on tempo to attain our 2020 cost-reduction targets and are progressing further financial savings subsequent yr as we handle by means of this unprecedented down cycle.”
Exxon beforehand introduced a discount in its capital spending program — from $33 billion to $23 billion — and the corporate stated it is forward of schedule because of elevated efficiencies and a slower venture tempo, amongst different issues. The corporate is concentrating on to spend $16 billion to $19 billion in its 2021 capital program.
Exxon additionally stated Thursday it intends to scale back its U.S. employees by round 1,900 staff, with world workforce reductions probably rising to as a lot as 15%. As of the tip of 2019 Exxon had a world workforce of 88,300, together with 13,300 contractors.
As oil and fuel corporations grapple with the continuing demand loss from Covid-19, some corporations have introduced dividend reductions in an effort to slash prices.
Exxon has repeatedly stated its dividend stays a precedence, and on Wednesday the corporate maintained its fourth-quarter dividend at 87 cents per share. Nevertheless it was the primary time since 1982 that the corporate did not increase its payout. The corporate at present yields 10.56%.
Analysis agency Edward Jones famous that there is an growing danger that Exxon must reduce its dividend in 2021 if demand would not absolutely recuperate.
It has been a tough few months for Exxon. In August, the corporate was faraway from the Dow Jones Industrial Common. Chevron not too long ago surpassed Exxon for the primary time to grow to be essentially the most worthwhile U.S. vitality firm primarily based on market capitalization, though Exxon’s present market valuation is larger. Chevron additionally reported a tough quarter on Friday.
Shares of Exxon have been flat in premarket buying and selling Friday. For 2020, shares have declined 52%.
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