Exxon Mobil cut its spending plans, postponed its earnings growth target and will write assets up to b 20bn in the fourth quarter as it reviews its portfolio following this year’s epidemic-driven oil price cut.
By volume on Monday, the largest U.S. manufacturing company said it would spend b 16bn- $ 19bn next year and then b 20bn- $ 25bn annually until 2025, with an original budget of b 30bn- $ 35bn.
The company said it would list natural gas reserves of 17 17bn- bn 20bn in western Canada, the US and Argentina – all of which would be removed from its development plan.
U.S. The last six months have seen brutal measures for the oil industry and Exxon, which previously embodied American corporate power. Once the world’s most valuable company, it is now worth less than local rival Chevron and has reported losses every quarter this year.
Darren Woods, chief executive, said the company’s “high grading” of its asset base – getting rid of obscure assets and focusing on better ones – would improve profits and rebuild the balance sheet capacity to manage future commodity price cycles, while maintaining . Reliable dividends ”.
The target of doubling earnings by 2025 has been postponed to 2027.
Exxon said the move would allow it to focus on growth projects focused on deepwater development and the development of some chemicals in the Permian Basin of New Mexico and Texas, Guyana and Brazil.
Exxon US 41bn in U.S. The potential retreat comes just over a decade after natural gas producer XTO Energy bought it – a deal in which Exxon is overpaid.
Unlike European rivals such as Royal Dutch Shell and BP, Exxon has refused to cut its dividends, having previously been raised in 2020 in a straight raised 37 37th year.
The company is confident that the strategy of continuing to increase oil and gas production will be rewarded by a recovery in fuel prices as less investment in research and manufacturing activity improves demand and other growth in supply slows.
Exxon has not officially changed plans to increase production from 4m barrels by 2025 now, although growth in Permian output will probably be slower than expected.
The oil group posted a net loss of 6 680 million in the three months to the end of September, compared to a profit of ૨ 2.8 billion in the same period last year, its third consecutive quarterly loss.
As part of its efforts to reduce operating costs and secure its dividends, the company plans to cut 14,000 jobs or 15% of employees globally.
Exxon’s share price has been down nearly half since the beginning of the year.
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