Exxon Mobil reported its fourth straight quarterly loss, capping a challenging 2020 marked indelibly by a global pandemic and the worst oil bust in a generation.
The Irving oil major, the nation’s largest, on Tuesday said it lost $20.1 billion during the fourth quarter, compared with a loss of $680 million in the third quarter and a loss of $1.1 billion in the second. Revenue improved slightly to $46.5 billion in the fourth quarter, up from $46.2 billion in the third quarter and $32.6 billion in the second.
“The past year presented the most challenging market conditions Exxon Mobil has ever experienced,” CEO Darren Woods said in a statement. “While the effects of the pandemic significantly impacted our 2020 results, our previously executed strategic initiatives and reorganizations enabled us to respond decisively to permanently improve our cost structure, drive greater efficiencies across our businesses, and emerge a stronger company.”
Indeed, 2020 posed an extraordinary challenge for oil and gas companies, which saw demand for crude evaporate with economic lockdowns and travel restrictions to slow the spread of the coronavirus. Exxon said it lost $22.4 billion in 2020, compared with a profit of $14.3 billion in 2019. Annual revenue plunged by nearly a third to $181.5 billion, down from $264.9 billion in 2019. It was the worst performance in four decades.
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In the face of historically low oil prices last year, Exxon slashed its capital spending by more than a third to $21.4 billion and froze its quarterly dividend. The company late last year announced plans to lay off 1,900 U.S. workers, including at least 700 in the Houston area, in February. Exxon’s fourth-quarter results include a severance charge of $326 million.
These cost-cutting measures are expected to save Exxon about $6 billion per year by 2023, relative to 2019, Woods said.
During this period of low oil prices, Exxon said it is focusing on low-cost, high-margin oil fields, such as the Permian Basin of West Texas, Brazil and in offshore Guyana.
The company this week announced the creation of a new business -- Exxon Mobil Low Carbon Solutions -- to develop 20 carbon capture projects around the world to help reduce greenhouse gas emissions. The new $3 billion investment in carbon capture technology comes as San Francisco-based activist investor Engine No. 1 launched a proxy fight against the oil giant, pressuring company leaders to focus more on renewable energy to improve its financial performance.
https://www.houstonchronicle.com/business/energy/article/Exxon-Mobil-trims-losses-in-fourth-quarter-15917746.php
2021-02-02 13:50:37Z
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