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COVID-19: Oil giant ExxonMobil posts largest loss ever

ExxonMobil reported its biggest-ever quarterly loss on Friday as the coronavirus pandemic slammed demand and prices for oil.

The Texas-based oil giant lost nearly $1.1 billion from April to June as COVID-19 caused a historic plunge in oil prices that hammered its production business.

That came on the heels of a $610 million loss in the first three months of the year, which was the first quarterly loss the company had posted since it was formed in a 1999 merger, according to ExxonMobil spokesperson Casey Norton.

“The global pandemic and oversupply conditions significantly impacted our second-quarter financial results with lower prices, margins and sales volumes,” company chairman and CEO Darren Woods said in a statement.

Exxon’s second-quarter loss of 26 cents a share wasn’t as bad as the 64-cent loss Wall Street was expecting, according to Bloomberg data. But it marked a stark reversal from the $3.1 billion profit the company posted in the same period last year.

Revenues plunged to $32.6 billion less than half last year’s levels while the pandemic depressed oil and gas output by 7 per cent to 3.6 million barrels a day, Exxon said.

But the rough quarter apparently won’t affect Exxon’s payouts to shareholders. The company said Wednesday that it will pay a dividend of 87 cents a share in September, an amount that’s held steady since the second quarter of last year.

Other oil giants have suffered amid the collapse in prices caused by pandemic-related lockdowns and a price war between Russia and Saudi Arabia that created a glut of fuel in the spring. The market deteriorated so much that the price of a benchmark US crude oil future dropped below $0 a barrel for the first time ever in April.

ExxonMobil shares were off 0.4 percent at $41.68 as of 10:24 a.m. Friday.

NY Post

Source: vanguardngr.com