Exxon Mobil Posts Third Consecutive Loss in 3Q
By Dave Sebastian
Exxon Mobil Corp. recorded its third consecutive quarterly loss
as the Covid-19 pandemic continued to sap oil demand.
The Irving, Texas, oil producer Friday posted a third-quarter
net loss of $680 million, or 15 cents a share, compared with a net
profit of $3.17 billion, or 75 cents a share, in the comparable
quarter last year. The results improved by $400 million from the
second quarter due to early stages of demand recovery, it said.
On an adjusted basis, it recorded a loss of 18 cents a share. A
loss in the first quarter was its first in three decades.
Analysts polled by FactSet had been expecting a loss of 23 cents
a share, or 26 cents a share on an adjusted basis.
Revenue fell 29% to $46.2 billion from the year-earlier period.
Analysts had been looking for $45.4 billion.
U.S. upstream earnings swung to a loss of $681 million from a
profit of $37 million. U.S. downstream earnings swung to a loss of
$136 million from a profit of $673 million. The company had
expected changes in upstream liquids prices to help its
third-quarter results by $1.4 billion to $1.8 billion.
Oil-equivalent production was 3.7 million barrels a day, up 1%
from the second quarter.
On Thursday, Exxon said it expects to shed as much as 15% of its
global workforce over the next year. The sector's largest companies
have also announced layoffs and cut billions of dollars from
Chevron Corp. said earlier this year it would cut its spending
by $4 billion, or 20%. It plans to lay off as much as 15% of its
Exxon on Friday said it expects further cost cuts in 2021. It
sees a preliminary 2021 capital program of $16 billion to $19
billion, down from its $23 billion target announced in April.
Exxon said it is reassessing North American dry gas assets
currently included in its development plan. Long-lived assets with
carrying values of $25 billion to $30 billion could be at risk for
significant impairment, the company said. But they wouldn't likely
be subject to significant impairment if the assets remain in its
long-term development plan, Exxon said. It expects to complete the
review this quarter.
Despite a modest economic recovery, oil-and-gas companies are
being hammered by a sustained drop in consumption of gasoline and
jet fuel as millions of people work from home and avoid driving and
flying during the pandemic. In Europe, new lockdowns in response to
climbing Covid-19 cases are damping hopes that the global economy
will regain its footing this year. Longer-term concerns also linger
about future competition from renewable energy and electric
vehicles to drag down the value of many oil-and-gas companies to
Chevron earlier Friday posted a third-quarter net loss of $207
million, or 12 cents a share, compared with a net profit of $2.58
billion, or $1.36 a share, in the comparable quarter last year.
Write to Dave Sebastian at firstname.lastname@example.org
(END) Dow Jones Newswires
October 30, 2020 08:13 ET (12:13 GMT)
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