Exxon booked a loss of $610 million for the primary quarter of 2020, compared to earnings of $2.4 billion for the primary quarter of 2019,
slipping into a quarterly loss for the primary time in additional than twenty years, as low oil prices weighed on asset valuations.
Exxon’s loss was the result of a $2.9 billion charge from identified items,
reflecting non-cash inventory valuation impacts from lower commodity prices and asset impairments.
At the start of April, the U.S. super major said it absolutely was making a ‘significant reduction’ to its cost (Capex),
slashing investments for 2020 by 30 percent, to around $23 billion, down from the previously announced CAPEX of some $33 billion.
Exxon also will cut its cash operating expenses by 15 percent, driven by deliberate actions to extend efficiencies and reduce costs.
Exxon’s oil-equivalent production rose by 2 percent year on year to 4 million barrels per day for Q1 2020.
Permian production grew 20 percent from the fourth quarter of 2019 and jumped by 56 percent from the primary quarter of 2019, Exxon said today.
Exxon, just like the other U.S. super major Chevron and in contrast to some European rivals like Shell and Equinor, is going to be preserving cash for the dividend.
Yesterday, Shell slashed its dividend for the primary time since war II to preserve cash and value during a highly uncertain macroeconomic environment.
Commenting on Exxon’s Q1 results, its chairman and CEO Darren Woods said:
“COVID-19 has significantly impacted near-term demand, leading to oversupplied markets and unprecedented pressure on commodity prices and margins.”
“While we manage through these challenging times, we don’t seem to be losing sight of the long-term fundamentals that drive our business,” Woods added.
“Our company remains strong and that we will manage through this market downturn as we’ve for many years,” Exxon’s boss said.