Exxon Posts $610M Loss Amid Oil Price Dive

Exxon Mobil posted its initially quarterly loss in decades on Friday, underscoring the impact of the coronavirus pandemic on the oil industry.

The enterprise claimed it lost $610 million, or 14 cents for each share, compared to a gain of $two.35 billion, or 55 cents for each share. Income fell by $seven.four billion, or approximately 12%, to $56.two billion.

Exxon attributed the loss to $two.nine billion in inventory compose-downs tied to falling oil prices. Excluding items, it created a gain of fifty three cents for each share.

“COVID-19 has substantially impacted around-time period demand, resulting in oversupplied marketplaces and unprecedented strain on commodity prices and margins,” CEO Darren Woods claimed in a information release.

On information of the earnings, Exxon’s shares dropped seven.two% to $43.14 in trading Friday. “The enterprise faces greater trader skepticism as oil marketplaces have collapsed in the wake of the global pandemic, which has frustrated demand for oil and fuel globally,” the Houston Chronicle claimed.

West Texas Intermediate, the U.S. oil benchmark, has fallen extra than 70% this year, forcing electrical power firms to slash spending and, in some cases, lower their dividend.

Exxon declared previously this month that it would decrease spending on oil exploration and creation this year by thirty% to $23 billion and lower working expenses by 15%. International funds spending in the industry is anticipated to fall by up to $100 billion this year.

In the initially quarter, Exxon’s oil‑equivalent creation was four million barrels for each working day, up two% from the initially quarter of 2019, with a seven% enhance in liquids partly offset by a 5% lower in fuel. It ideas to lower creation by around four hundred,000 oil-equal bpd thanks to “economic shut-ins and sector curtailments as [a] end result of COVID-19.”

“While we deal with by way of these complicated moments, we are not getting rid of sight of the prolonged-time period fundamentals that travel our business enterprise,” Woods claimed. “Economic exercise will return, and populations and benchmarks of living will enhance, which will in convert travel demand for our products and a recovery of the industry.”

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