A sign was seen at the entrance of the ExxonMobil Port Allen Lubricant Factory in Port Allen, Louisiana, on November 6, 2015.
Lee Celano | Reuters
Exxon Mobil said on Tuesday that it had lost $ 20.1 billion during the past quarter, its fourth consecutive quarter of losses, as the energy giant continues to struggle with the impact of the pandemic on the industry.
Exxon said it earned 3 cents a share, excluding items during the fourth quarter, predicted as the 1 percent analysts surveyed by Refinitiv. However, revenue fell below expectations of $ 46.54 billion. The Street Consensus was for $ 48.76 billion.
In the same period a year earlier, the company earned 41 cents per share on an adjusted basis, at $ 67.17 billion in revenue. During the third quarter of 2020, Exxon lost 18 cents a share on an adjusted basis, while generating $ 46.2 billion in revenue.
Shares of Exxon rose about 2% during the pre-trading period on Tuesday.
“The past year has been the most challenging market situation ExxonMobil has ever experienced,” Darren Woods, Exxon chairman and CEO, said in a statement. Woods said the company’s aggressive cost savings are expected to deliver $ 6 billion a year in structural savings by 2023.
‘We have built a flexible capital program that is robust for a range of market scenarios and focuses on our greatest return opportunities to achieve greater cash flow, cover dividends and increase the earning potential of our business in the short and long term. , “Woods added.
Exxon on Monday announced plans to invest $ 3 billion in carbon capture and other technologies that reduce emissions. According to some people, the move is too little too late, says Exxon should have invested for the future. Peer peers, including BP, also set net zero targets.
Oil has risen steadily over the past year following the unprecedented loss of demand from the coronavirus pandemic. U.S. Texas interim crude futures rose more than 2% on Tuesday to trade at $ 54.96 a barrel, the highest level of the contract since January 2020. The energy industry is still feeling the effects of a depressed demand.
Shares of Exxon have risen 9% this year and 27% over the past 12 months.
Rival Chevron said Friday it lost 1 cent on an adjusted basis during the fourth quarter, compared to the consensus estimate for a 7-cent gain. Revenue also came in less than analysts’ expectations.
The CEOs of the two largest oil companies in the US reportedly held merger talks while Covid-19 launched their operations. Exxon declined to comment, while a Chevron spokesman said the company did not comment on “rumors or speculations about the market.”
Shares in Chevron rose 2% this year and 19% in the past year.
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