A sign is seen at the entrance to the ExxonMobil Port Allen Lubricant Plant in Port Allen, Louisiana, November 6, 2015.
Lee Celano | Reuters
Exxon Mobil said on Tuesday it lost $ 20.1 billion during the most recent quarter, its fourth consecutive quarter of losses as the energy giant continues to struggle with the impact of the pandemic in the sector.
Exxon said it earned 3 cents per share, excluding items, during the fourth quarter, which was ahead of the 1 cent earnings expected by analysts polled by Refinitiv. Revenue, however, was below expectations at $ 46.54 billion. The Street consensus was $ 48.76 billion.
In the same period last year, the company earned 41 cents per share on an adjusted basis, with revenue of $ 67.17 billion. During the third quarter of 2020, Exxon lost 18 cents per share on an adjusted basis, while generating $ 46.2 billion in revenue.
Exxon’s shares advanced about 2% during the pre-market negotiations on Tuesday.
“Last year presented the most challenging market conditions that ExxonMobil has ever experienced,” said Darren Woods, Exxon’s president and CEO, in a statement. Woods said the company’s aggressive cost-cutting measures should generate structural spending savings of $ 6 billion a year by 2023.
“We have built a flexible capital program that is robust for a variety of market scenarios and focused on our highest return opportunities to generate greater cash flow, cover dividends 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. The move is a little too late, according to some, who say that Exxon should have prioritized investments for the future. Peers, including BP, also set net goals of zero.
Oil has risen steadily in the past year after the unprecedented loss of demand from the coronavirus pandemic. US West Texas Intermediate oil futures advanced more than 2% on Tuesday, to trade at $ 54.96 a barrel, the highest level of the contract since January 2020. Still, the energy industry remains to feel the impacts of depressed demand.
Exxon’s shares have risen 9% this year and have fallen 27% in the past 12 months.
Rival Chevron said on Friday it lost 1 cent during the fourth quarter on an adjusted basis, compared to the consensus estimate of 7 cents. Revenue also fell short of analysts’ expectations.
The CEOs of the two largest U.S. oil companies held talks about the merger while Covid-19 clouded its operations, according to several reports. Exxon declined to comment, while a Chevron spokesman said the company did not comment on “market rumors or speculation”.
Chevron’s shares rose 2% this year and fell 19% last year.
Sign up for CNBC PRO to get exclusive insights and analysis and live business day programming from around the world.