A view of the Exxon Mobil Refinery in Baytown, Texas.
Jessica Rinaldi | Reuters
On Friday, ExxonMobil announced its losses for the third consecutive quarter as lower oil demand caused by the Coronavirus pandemic affected the company’s operations.
During the third quarter, the company lost $ 680 million, although Exxon said results improved on a quarterly basis thanks to “early stages of demand recovery”.
On a adjusted basis, Exxon lost 18 cents per share during the quarter while generating $ 46.2 billion in revenue. The Street newspaper expected a 25 percent loss per share and $ 46.01 billion in revenue, according to Refinitiv estimates.
a a year ago, The company generated 75 cents per share, with revenue of $ 65.05 billion. During the second quarter of 2020, Exxon lost 70 cents a share on a revised basis, while revenue was $ 32.61 billion.
“We remain confident of our long-term strategy and business fundamentals, and we are taking measures to preserve value while protecting the balance sheet and dividends,” said Darren Woods, Chairman and CEO. “We are on track to meet our cost-cutting targets for 2020 and are making progress on additional savings next year as we thrive through an unprecedented downturn
Exxon previously announced a cut in its capital spending program – from $ 33 billion to $ 23 billion – and the company said it was ahead of schedule due to increased efficiencies and a slowing pace of the project, among other things. The company aims to spend between $ 16 billion and $ 19 billion in its capital program for 2021.
Exxon also said Thursday that it intends to reduce its US staff by about 1,900 global employees Workforce reduction is likely to rise up to 15%. As of the end of 2019, Exxon had a global workforce of 88,300, including 13,300 contractors.
As oil and gas companies struggle with the ongoing demand loss from Covid-19, some companies have announced profit cuts in an attempt to cut costs.
Exxon has repeatedly said that its dividend remains a priority, and on Wednesday the company maintained its fourth-quarter dividend at 87 cents a share. But it was the first time since 1982 that the company had not raised its payments. The company is currently producing 10.56%.
Research firm Edward Jones indicated that there is an increased risk that Exxon will have to cut its profits in 2021 if demand does not fully recover.
It’s been a tough few months for Exxon. In August, the company was removed from the Dow Jones Industrial Average. Chevron recently overtook Exxon for the first time to become the most valuable U.S. energy company based on market cap, although Exxon’s current market valuation is higher. Chevron He also reported a difficult quarter on Friday.
Exxon shares were flat in pre-market trading on Friday. For 2020, stocks are down 52%.
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