A sign is seen at the entrance to the ExxonMobil Port Allen lubrication plant in Port Allen, Louisiana, November 6, 2015.
Lee Celano | Reuters
Exxon Mobil said on Tuesday that it lost $ 20.1 billion in the last quarter, the fourth consecutive quarter of losses, as the energy giant continues to face the impact of the pandemic on the industry.
Exxon said it gained 3 cents a share, excluding items in the fourth quarter, which was ahead of analysts’ 1-cent profit expectations, questioned by Refinitiv. However, revenues fell to $ 46.54 billion. The street’s consensus was $ 48.76 billion.
In the same period a year earlier, the company earned 41 cents a share on an adjusted basis, with revenue of $ 67.17 billion. In the third quarter of 2020, Exxon lost 18 cents a share on an adjusted basis, while generating revenue of $ 46.2 billion.
Exxon shares advanced about 2% during premarket trading on Tuesday.
“Last year saw the most difficult market conditions ExxonMobil has ever experienced,” Darren Woods, president and CEO of Exxon, said in a statement. Woods said the company’s aggressive cost-cutting measures should produce structural spending savings of $ 6 billion a year by 2023.
“We have built a flexible capital program that is robust to a range of market scenarios and focused on our most profitable opportunities to generate higher cash flow, dividend coverage and increase our business’s earning potential on short and long term, “Woods added.
On Monday, Exxon announced plans to invest $ 3 billion in carbon capture and other emission reduction technologies. The move is a little too late, according to some, who say Exxon should have given priority to investment for the future. Colleagues, including BP, also set net-zero targets.
Oil has risen steadily over the past year, following an unprecedented loss of demand in the coronavirus pandemic. British futures West Texas Intermediate rose more than 2% on Tuesday to trade at $ 54.96 a barrel, the highest level of the contract since January 2020. However, the energy industry continues to feel the impact of depressed demand.
Exxon shares have risen 9% this year and fallen 27% in the last 12 months.
Rival Chevron said Friday that it lost 1 cent in the fourth quarter on an adjusted basis compared to the consensus estimate for a 7-cent profit. Revenue also came in short of analysts’ expectations.
The executive directors of the two largest oil companies in the USA allegedly held merger talks, while Covid-19 was carrying out its operations, according to several reports. Exxon declined to comment, while a Chevron spokesman said the company did not comment on “market rumors or speculation.”
Chevron shares rose 2% this year and fell 19% from last year.
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