A sign is seen at the entrance to the ExxonMobil Port Allen Lubricant Plant in Port Allen, Louisiana, on November 6, 2015.
Lee Celano | Reuters
Exxon Mobil said Tuesday it lost $ 20.1 billion in the most recent quarter, its fourth consecutive quarter of losses, as the energy giant continues to face the impact of the pandemic on the industry.
Exxon said it earned 3 cents per share not including items during the fourth quarter, which was ahead of expectations for 1-cent profit analysts surveyed by Refinitiv. However, revenue exceeded expectations by $ 46.544 billion. The consensus on the street was $ 48.76 billion.
In the same period last year, the company earned 41 cents per share on a tight basis, with revenue of $ 67.17 billion. During the third quarter of 2020, Exxon lost 18 cents per share on an adjusted basis, generating revenue of $ 46.2 billion.
Exxon shares were up about 2% during pre-market trading on Tuesday.
“Last year presented the toughest market conditions ExxonMobil has experienced,” said Darren Woods, president and CEO of Exxon. Woods said the company’s aggressive cost-cutting measures are expected to generate $ 6 billion in structural cost savings by 2023.
“We have built a flexible capital program that is based on a number of market scenarios and focuses on our highest profitability opportunities to generate greater cash flow, cover the dividend and increase the profit potential of our business. in the short and long term, “Woods added.
On Monday, Exxon announced plans to invest $ 3 billion in carbon capture and other emission reduction technologies. According to some, the step is too late, according to some, who say Exxon should have prioritized investment for the future. Colleagues, including BP, have also set net targets.
Oil has risen steadily over the past year following the unprecedented loss of demand for the coronavirus pandemic. West Texas Intermediate Crude Oil futures in the United States advanced more than 2% on Tuesday to trading at $ 54.96 a barrel, the highest level of the contract since January 2020. However, the industry energy continues to feel the impacts of depressed demand.
Exxon shares have risen 9% this year and are down 27% in the last twelve months.
Rival Chevron said Friday that it lost 1 cent during the fourth quarter tightly, compared to the consensus estimate for a 7-cent profit. Revenue also exceeded analysts ’expectations.
According to several reports, CEOs of the two largest oil companies in the United States held merger talks while Covid-19 flew its operations. Exxon declined to comment, while a Chevron spokesman said the company does not comment on “rumors or market speculation.”
Chevron shares have risen 2% this year and are down 19% from last year.
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