On 6 November 2015, a sign has been seen at the entrance of the ExxonMobil Port Allen lubricant plant in Port Allen, Louisiana.
Lee Celano | Reuters
Exxon Mobil said on Tuesday that it had incurred a loss of $ 20.1 billion during the most recent quarter, as the energy giant’s losses in the fourth quarter continued to widen due to the impact of the epidemic on the industry.
Exxon said it earned 3 cents per share excluding commodities during the fourth quarter, ahead of the 1 percent profit analysts surveyed by Refinitive. However, revenue was lower than expected at $ 46.54 billion. Street was agreed to for $ 48.76 billion.
The company earned 41 cents per share on an adjusted basis in the same period a year earlier, with $ 67.17 billion in revenue. Exxon lost 18 cents per share on an adjusted basis during the third quarter of 2020, while generating $ 46.2 billion in revenue.
Exxon shares gained nearly 2% during premarket trading on Tuesday.
“The last year has presented the most challenging market situation ExxonMobil has ever experienced,” Darren Woods, Exxon’s president and chief executive, said in a statement. Woods said the company’s aggressive cost-cutting measures are expected to deliver structural expenditure savings of $ 6 billion per year by 2023.
“We have created a flexible capital program that is robust to a range of market scenarios and to drive greater cash flow, cover dividends and increase our business income potential in the near and long term. Has focused on opportunities., “Woods added.
On Monday, Exxon announced plans to invest $ 3 billion in carbon capture and other emission-cutting technology. The move is too late, according to some, who say that Exxon should prioritize investment for the future. Peers including BP have also set net-zero targets.
Oil has climbed steadily over the past year following unprecedented demand losses from the coronovirus epidemic. US West Texas Intermediate crude futures moved up more than 2% to trade at $ 54.96 a barrel on Tuesday. The highest level of contract since January 2020. Nevertheless, the energy industry continues to feel the effects of depressed demand.
Exxon shares have declined 9% this year and 27% over the past 12 months.
Rival Chevron said on Friday that it declined 1 percent on an adjusted basis during the fourth quarter, compared to the consensus estimate for a 7 percent gain. Revenue also fell short of analyst expectations.
According to several reports, the CEOs of the two largest oil companies in the US held merger talks as Kovid-19. Exxon declined to comment, while a Chevron spokesman said the company “does not comment on market rumors or speculation.”
Chevron shares are up 2% this year, and down 19% over last year.
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