Chevron and Exxon post big losses as oil prices plummet

Actions of Exxon (XOM) and Chevron (CVX) each of the first to quote on Friday after announcing the results. On Thursday, both stocks were among the Dow’s biggest losers.

The coronavirus crisis has decimated oil demand in 2020. Exxon lost $ 1.1 billion, the company’s second consecutive quarterly loss, while Chevron posted a loss of $ 8.3 billion.

Crude prices have fallen more than 25% this year and even briefly fell below $ 0 at one point. However, oil prices have recovered recently and are now around $ 40 per barrel.

Still, the CEOs of both energy giants didn’t seem overly optimistic about the future.

“The past few months have presented unique challenges,” said Chevron President and CEO Michael Wirth. “The economic impact of the Covid-19 response significantly reduced demand for our products and lowered commodity prices.”

Chevron added in its statement that “although demand and commodity prices have shown signs of recovery, they have not returned to pre-pandemic levels,” and the results are likely to remain “depressed” in the third quarter.

Exxon President and CEO Darren Woods said “The global pandemic and oversupply conditions significantly impacted our second quarter financial results with lower prices, margins and sales volumes.”

As a result, the company reduced spending in the short term, Woods said, adding that “the company has identified significant potential for further reductions” that it will announce at a later date.