Exxon Mobil lost $22 billion in 2020, its worst performance in four decades.
Exxon Mobil reported losses for the fourth consecutive quarter on Tuesday as the epidemic continued on energy demand and oil and natural gas prices.
In the worst year for the company in four decades, Exxon said it incurred a loss of $ 22.4 billion in 2020, with profits of $ 14.3 billion in 2019. A large portion of the company’s losses in the last three months came from a $ 19.3 billion write-down. The year the company slashed the price of US natural gas fields, when gas prices were high before the market flooded a decade ago.
Exxon cut exploration and production by $ 21.4 billion, or 35 percent, due to the epidemic last year.
Darren W., the company’s president and chief executive officer. “The past year presented the most challenging market conditions Exxon Mobil has ever experienced,” Woods said. He said the company ended the year with a “flexible capital program”, a “flexible capital program” that is robust to a range of market scenarios and focused on our highest-return opportunities.
There were some signs of recovery in the fourth quarter. Excluding its write-up, Exxon made a small profit of $ 110 million in the quarter as commodity prices began to recover.
Exxon’s large chemical business grossed $ 691 million, its best quarterly results since 2018. Oil production in the Peruvian Basin in Texas and New Mexico increased by 42 percent in the quarter compared to the fourth quarter of 2019. After a slow start in 2019, oil production flooded up to 120,000 barrels a day in deep waters off the coast of Guyana and is expected to increase significantly over the next five years.
In early 2020, there was continued concern among investors that the company would cut its dividend, but as oil prices were above $ 50 a barrel in recent weeks, those fears have eased. Since November, the company’s share price has fallen nearly 40 percent. Exxon was up nearly 2 percent in early Tuesday trading.
Under pressure to show progress in curbing emissions, the company said on Monday that it is building a new business called Low Carbon Solutions to develop carbon capture and sequestration projects around the world.
The company hopes to restructure its board in the coming months and on Tuesday, Tan Sri Van Zulkifli Van Arifin, former chairman of the Malaysian oil company Petronas, announced the election of a new member.