U.S. supermajor ExxonMobil has recorded net losses of $1.08 billion for second-quarter as the effects of the Covid-19 pandemic hit production and prices, Kallanish Energy reports.
ExxonMobil had previously warned investors of an impending second-quarter loss in early July. The $1.08 billion net loss is comparable to the $3.1 billion profit recorded in second-quarter last year, following the impact of Covid-19 on demand, margins and pricing.
For the upstream segment, ExxonMobil recorded a loss of $1.65 billion, of which $1.2 was incurred from its U.S. activities. In comparison, the company recorded a profit of $335 million during the same period the year prior. Upstream earnings were negatively impacted by lower prices and lower production volumes.
Total production volumes during second-quarter, covering liquids and gas, was 3.6 million barrels of oil equivalent per day (Mmboe/d), a 6.9% year-on-year decrease from second-quarter last year (3.9 Mmboe/d).
Natural gas production totalled 7.99 million cubic feet per day (Mmcf/d), a year-on-year 12.4% decrease from 9.09 Mmcf/d in the same period of 2019.
In the downstream segment the company posted a profit of $976 million, a 116% year-on-year increase from $451 million in second-quarter last year. The increase in revenue was due to non-US activity, which benefitted from lower expenses, favorable foreign exchange, and favorable identified items.”
Unlike its supermajor competitors Total and Shell, ExxonMobil did not announce any significant impairments or asset write-downs for second-quarter, although impairments recorded during first-quarter still impacted on second-quarter losses.
“The global pandemic and oversupply conditions significantly impacted our second quarter financial results with lower prices, margins, and sales volumes. We responded decisively by reducing near-term spending and continuing work to improve efficiency by leveraging recent reorganizations,” said Darren W. Woods, ExxonMobil chairman and chief executive officer.
“The progress we’ve made to date gives us confidence that we will meet or exceed our cost-reduction targets for 2020 and provides a strong foundation for further efficiencies.”
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