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Mar 31, 2020
ExxonMobil Q1 2020 Earnings Report
ExxonMobil reported a loss for Q1 2020 due to market-related write-downs and lower commodity prices.
Key Takeaways
ExxonMobil reported a first quarter loss of $610 million, driven by a $2.9 billion noncash charge from market-related write-downs. The company is reducing 2020 capital and operating spend to manage unprecedented market challenges. Oil-equivalent production was 4 million barrels per day, up 2% from the first quarter of 2019.
First quarter loss of $610 million driven by $2.9 billion noncash charge from market-related write-downs.
Capital and exploration expenditures were $7.1 billion.
Oil‑equivalent production was 4 million barrels per day, up 2 percent from the first quarter of 2019.
Reducing 2020 capital spending by 30 percent and cash operating expenses by 15 percent.
ExxonMobil
ExxonMobil
Forward Guidance
ExxonMobil is reducing its 2020 capital spending by 30 percent and lowering cash operating expenses by 15 percent in response to low commodity prices resulting from oversupply and demand weakness from the COVID-19 pandemic.
Positive Outlook
- Economic activity will return.
- Populations will increase.
- Standards of living will increase.
- Demand for products will increase.
- Recovery of the industry
Challenges Ahead
- COVID-19 has significantly impacted near-term demand.
- Oversupplied markets
- Unprecedented pressure on commodity prices
- Unprecedented pressure on margins
- Low commodity prices