Exxon Mobil reports a $20 billion loss, fourth-straight quarter in the red

An indication is seen at the entrance of the ExxonMobil Port Allen Lubricants Plant in Port Allen, Louisiana, November 6, 2015.

Lee Celano | Reuters

Exxon Mobil mentioned Tuesday it misplaced $20.1 billion throughout the most up-to-date quarter, its fourth-straight quarter of losses as the power large grapples with the pandemic’s impression on the business.

Exxon mentioned it earned Three cents per share excluding gadgets throughout the fourth quarter, which was forward of the 1 cent revenue analysts surveyed by Refinitiv anticipated. Revenue, nonetheless, got here up in need of expectations at $46.54 billion. The Street consensus was for $48.76 billion.

In the identical interval a yr earlier, the firm earned 41 cents per share on an adjusted foundation, on $67.17 billion in income. During the third quarter of 2020, Exxon misplaced 18 cents per share on an adjusted foundation, whereas producing $46.2 billion in income.

Shares of Exxon superior 1.7% in early buying and selling Tuesday.

“The past year presented the most challenging market conditions ExxonMobil has ever experienced,” Darren Woods, Exxon chairman and chief govt officer, mentioned in a assertion. Woods mentioned the firm’s aggressive cost-cutting measures are anticipated to ship structural expense financial savings of $6 billion per yr by 2023.

“We’ve built a flexible capital program that is robust to a range of market scenarios and focused on our highest-return opportunities to drive greater cash flow, cover the dividend, and increase the earnings potential of our business in the near and longer term,” Woods added.

On Monday Exxon introduced plans to speculate $3 billion in carbon seize and different emissions-cutting know-how. The transfer is simply too little too late, in keeping with some, who say Exxon ought to have prioritized investing for the future. Peers together with BP have additionally set net-zero targets.

Oil has steadily climbed greater over the final yr following the unprecedented demand loss from the coronavirus pandemic. U.S. West Texas Intermediate crude futures superior greater than 2% on Tuesday to commerce at excessive as $54.96 per barrel, the contract’s highest stage since Jan. 2020. Still, the power business continues to really feel the impacts of depressed demand.

Shares of Exxon are up 9% this yr, and down 27% over the final 12 months.

Rival Chevron on Friday mentioned it misplaced 1 cent throughout the fourth quarter on an adjusted foundation, in comparison with the consensus estimate for a 7 cent revenue. Revenue additionally got here up in need of analysts’ expectations.

The CEOs of the two largest oil corporations in the U.S. reportedly held merger talks as Covid-19 roiled their operations, in keeping with a number of reports. Exxon declined to remark, whereas a Chevron spokesperson mentioned the firm doesn’t touch upon “market rumors or speculation.”

Shares of Chevron are up 2% this yr, and down 19% over the final yr.

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