Both ExxonMobil and BP announced on Tuesday that they suffered heavy losses in 2020 amid low oil demand due to the coronavirus pandemic.
Exxon posted a loss of $ 22.4 billion in 2020, posting a loss of $ 20.1 billion in the fourth quarter.
According Reuters, this was Exxon’s first annual loss.
BP reported losses of $ 20 billion in 2020, including almost $ 1.4 billion in the fourth quarter.
Chevron, meanwhile, announced last month that it had lost $ 5.5 billion in 2020, including $ 665 million in the fourth quarter.
During the pandemic, oil prices plummeted, especially at the beginning of the year, as demand for oil declined amid a significant drop in travel and disputes abroad.
However, in recent months, oil prices have rebounded and U.S. oil was selling at around $ 55 a share on Tuesday afternoon. Demand is expected to recover somewhat if the pandemic is controlled.
“Last year presented the most challenging market conditions that ExxonMobil has ever experienced,” said ExxonMobil CEO Darren Woods in a statement.
Woods added that “reorganizations” and initiatives “have allowed us to respond decisively to permanently improve our cost structure, drive greater efficiency in our business and create a stronger company”.
In October, the company announced plans to lay off about 1,900 US employees.
At the same time, was reported that BP would cut 7,500 jobs after an additional 2,500 accepted voluntary dismissal.
In a statement, BP CEO Bernard Looney characterized the changes, including job losses, as a “reinvention” of the company.
“The company’s underlying operations have remained safe – one of our most secure years – and reliable, and major new projects have been put into operation,” added Looney.