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Pandemic Hits Exxon's Profit For The Third Consecutive Quarter

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Pandemic Hits Exxon's Profit For The Third Consecutive Quarter

Exxon Mobil Corporation (NYSE: XOM) reported a loss and revenue decline for the third straight quarter as COVID-19 impacted energy demand and prices, Reuters reports.

Key Highlights: The largest oil producer posted a revenue decline of 28.9% year-over-year to $46.2 billion in the third quarter of 2020 on Friday.

Adjusted diluted loss per share of 18 cents was better than the anticipated loss of 25 cents.

Exxon produced 3.67 million oil-equivalent barrels per day in Q3, falling by 5.82% YoY, missing a consensus of 3.72 million.

"We remain confident in our long-term strategy and the fundamentals of our business, and are taking the necessary actions to preserve value while protecting the balance sheet and dividend," chairman and CEO Darren W. Woods said.

Exxon generated $4.39 billion in operating cash flow in Q3 and spent $4.13 billion in capital expenditures.

The company lost $680 million from U.S upstream operations, $136 million from U.S downstream operations but gained $357 million from chemical operations.

The company has slashed its planned 2021 capital expenditure target to the range of $16 billion to $19 billion, from $23 billion announced in April.

The company had announced global job cuts on Thursday, including 1,900 in the U.S.

Price Action: XOM shares are trading marginally lower by 0.39% to $32.84 in the pre-market session Friday.

Image Courtesy: Wikimedia

 

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