Exxon posts third straight loss as pandemic hits demand, prices

In this news, we discuss the Exxon posts third straight loss as pandemic hits demand, prices.

(Reuters) – Exxon Mobil Corp. XOM.N released its third consecutive quarterly loss on Friday and detailed larger spending cuts to come, as major COVID-19 oil cuts impact energy demand and prices.

The largest US oil producer by volume plans to cut its capital spending for 2021 to between $ 16 billion and $ 19 billion, compared to the $ 23 billion forecast this year.

He also said he was revaluing his natural gas holdings in North America and could depreciate between $ 25 billion and $ 30 billion, but only if he changes his long-term development plans. He is evaluating these assets this quarter.

Exxon hasn’t seen any depreciation in the shale fields this year and has long said it believes demand for its products will increase as more people join the middle class around the world.

Exxon’s third-quarter net loss was $ 680 million, or 15 cents per share, compared with a profit of $ 3.17 billion, or 75 cents per share, a year earlier.

The company plans to exceed targets for reducing capital and cash expenditures for 2020 and expects further reductions in 2021.

This week, the U.S. oil producer said it would cut its workforce by around 15% and keep its fourth-quarter dividend at 87 cents per share, signaling that 2020 will be the first year since 1982 that he did not increase his payments to shareholders.

Exxon was caught off guard by the sharp drop in energy prices and demand this year. U.S. prices have fallen 39% since the start of the year and global demand has declined due to the COVID-19 pandemic.

Reporting by Jennifer Hiller in Houston and Arathy S Nair in Bengaluru; Editing by Barbara Lewis and Jason Neely

Original © Thomson Reuters

Originally posted 2020-10-30 18:06:10.

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