Gas costs are displayed at an Exxon Mobil Corp. gasoline station in Arlington, Virginia, U.S., on Wednesday, April 29, 2020.
Andrew Harrer | Bloomberg | Getty Pictures
Exxon Mobil on Friday reported its first loss in many years as oil costs plunged to historic lows following a drop-off in demand brought on by the coronavirus.
The oil large misplaced $610 million within the first quarter resulting from $2.9 billion in writedowns tied to falling oil costs. Exxon posted a GAAP lack of 14 cents per share, and a non-GAAP revenue of 53 cents per share. In the identical quarter a 12 months earlier the corporate earned $2.35 billion, or 55 cents per share, on income of $63.63 billion.
Shares of Exxon slipped greater than 3% on Friday.
“COVID-19 has considerably impacted near-term demand, leading to oversupplied markets and unprecedented strain on commodity costs and margins,” CEO Darren Woods mentioned in a press release.
The corporate mentioned that oil-equivalent manufacturing rose 2% year-over-year to four million barrels per day.
West Texas Intermediate, the U.S. oil benchmark, has dropped greater than 70% this 12 months, forcing some vitality corporations to chop their dividend.
However Exxon has mentioned the corporate has no plans to chop its dividend, and on Wednesday, forward of the earnings launch, the corporate mentioned it might preserve its dividend at 87 cents per share.
In April Exxon slashed its capital spending plan for 2020 by 30% from $33 billion to round $23 billion, and mentioned it might lower working bills by roughly 15%. The corporate mentioned the biggest share of the discount could be within the Permian Basin, the place it is simpler to regulate short-cycle investments.
“Our firm stays sturdy and we’ll handle by means of the present market downturn as we’ve for many years,” mentioned Woods. “At present’s circumstances are actually distinctive, however our folks have the expertise, our enterprise has the dimensions, and we’ve the monetary energy to see us by means of and emerge stronger than ever,” Woods mentioned Friday in a press release.
Shares of Exxon have shed 34% this 12 months.
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