Exxon Mobil Posts Second Consecutive Quarterly Loss
July 31 2020 - 8:24AM
Dow Jones News
By Dave Sebastian
Exxon Mobil Corp. recorded its second consecutive quarterly loss
as lower oil and gas prices sapped production gains and the
decimation in global travel crimped fuel demand amid the
coronavirus pandemic.
The oil producer on Friday posted a second-quarter loss of $1.08
billion, or 26 cents a share, compared with a profit of $3.13
billion, or 73 cents a share, in the comparable quarter last year.
On an adjusted base, it recorded a loss of 70 cents a share. A loss
in the first quarter was its first in three decades.
Analysts polled by FactSet were expecting a loss of 41 cents a
share, or 61 cents a share on an adjusted basis.
Revenue fell 53% to $32.61 billion from $69.09 billion in the
year-ago period. Analysts were looking for $38.16 billion.
Downstream earnings, which represents much of the company's
operations after it pumps oil out of the ground, rose to $976
million from $451 million, driven by gains outside the U.S.
Oil-equivalent production was 3.6 million barrels a day, down 7%
from the year-ago period.
Capital and exploration expenditures fell nearly $2 billion from
the first quarter to $5.3 billion as the company moved to cut
costs.
"The global pandemic and oversupply conditions significantly
impacted our second quarter financial results with lower prices,
margins, and sales volumes," Chairman and Chief Executive Darren
Woods said. "We responded decisively by reducing near-term spending
and continuing work to improve efficiency by leveraging recent
reorganizations."
Mr. Woods said the company doesn't plan to take on additional
debt.
"We have increased debt to a level we feel is appropriate to
provide liquidity, given market uncertainties," Mr. Woods said.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
July 31, 2020 08:09 ET (12:09 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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