FRI, MAY 01 2020-theG&BJournal-Exxon Mobil Corporation took a $2.9 billion charge in the first quarter of 2020-blamed on lower commodity prices and asset impairments-but the oil giant said capital allocation priorities remain unchanged.
The company announced today an estimated first quarter 2020 loss of $610 million, or $0.14 per share assuming dilution, compared with earnings of $2.4 billion a year earlier.
Cash flow from operating activities was $6.3 billion. Capital and exploration expenditures were $7.1 billion.
“COVID-19 has significantly impacted near-term demand, resulting in oversupplied markets and unprecedented pressure on commodity prices and margins,” said Darren W. Woods, chairman and chief executive officer while announcing the earnings.
In response to market conditions, ExxonMobil said that it is reducing 2020 capital spending by 30 percent and cash operating expenses by 15 percent.
Capex is now expected to be approximately $23 billion for the year, down from the previously announced guidance of $33 billion.
“While we manage through these challenging times, we are not losing sight of the long-term fundamentals that drive our business. Economic activity will return, and populations and standards of living will increase, which will in turn drive demand for our products and a recovery of the industry,” Woods said.