Fuel prices are displayed at an Exxon Mobil Corp. service station in Arlington, Virginia, USA, on Wednesday April 29, 2020.
Andrew Harrer | Bloomberg | fake pictures
Exxon said Friday that it lost $ 1.1 billion in the second quarter amid “global oversupply and COVID-related demand impacts.” It was the second consecutive quarter of losses of the oil giant.
The company lost 70 cents a share on an adjusted basis, while revenue reached $ 32.61 billion. In the same quarter a year ago, Exxon earned 73 cents a share, with revenue of $ 69.09 billion.
Analysts had expected the company to report a loss of 61 cents a share for the second quarter and revenue of $ 38.157 billion, according to Refinitiv estimates.
Exxon’s shares were approximately 2% lower during Friday’s premarket trading.
“The global pandemic and oversupply conditions significantly impacted our second quarter financial results with lower prices, margins and sales volumes,” Darren Woods, CEO of Exxon, said in a statement.
“We have increased the debt to a level that we consider appropriate to provide liquidity, given the uncertainties in the market. Based on current projections, we do not plan to take on any additional debt,” he added.
Oil equivalent production fell 7% year-over-year, and the company said average crude oil and natural gas prices were “significantly lower” than in the same quarter the year before.
West Texas Intermediate, the US oil benchmark, is down more than 30% this year, forcing energy companies to cut expenses and, in some cases, cut their dividends.
But before its quarterly results, Exxon once again reiterated that it has no plans to cut its dividend. The third-quarter dividend will be 87 cents, according to a company statement released Wednesday.
In the first quarter, the oil giant lost $ 610 million due to $ 2.9 billion in amortizations linked to falling oil prices. Exxon posted a GAAP loss of 14 cents a share, and a non-GAAP profit of 53 cents a share. Revenue fell to $ 56.16 billion.
Exxon’s shares fell 40% this year.
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