Major U.S oil giant Exxon Mobil (XOM) Corporation reported sobering news and its first loss in decades as oil prices plunged to historic lows due to drop-off in demand amid the coronavirus outbreak. The company lost $610M in the first quarter due to $2.9B in write-downs tied to falling oil prices.
- Exxon reported a GAAP loss of 14 cents per share and a non-GAAP profit of 53 cents per share.
- Revenue dropped to $56.16 billion, a year earlier the company earned a revenue of $63.63 billion.
- Exxon has no plans to cut its dividend and maintains its dividend at 87 cents per share.
- Exxon plans to cut short production by 400,000 oil-equivalent barrels per day due to “economic shut-ins and market curtailments as a result of COVID-19.”
- Exxon curtailed its capital spending plan for 2020 by 30% from $33 billion to around $23 billion and plans to cut operating expenses by roughly 15%.
- The oil giant incurred a $610 million loss in the first quarter due to $2.9 billion in write-downs because of falling oil prices.
- Shares of Exxon declined ~38% this year.
“Our company remains strong and we will manage through the current market downturn as we have for decades. Today’s circumstances are certainly unique, but our people have the experience, our business has the scale, and we have the financial strength to see us through and emerge stronger than ever,” stated CEO Darren Woods.
Exxon Mobil (XOM) Corporation is a global oil and natural gas company, founded in 1870 and headquartered in Irving Texas, Exxon Mobil explores for and produces crude oil and natural gas, manufacture and markets commodity petrochemicals, and transports and sells crude oil, natural gas, and petroleum. To learn more about ExxonMobil Corporation (XOM) and to continue to track its progress please visit the Vista Partners ExxonMobil Corp. Page.
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