Home Finance News Exxon loses $610 million within the first quarter on writedowns tied to...

Exxon loses $610 million within the first quarter on writedowns tied to plunging oil

Exxon loses $610 million in the first quarter on writedowns tied to plunging oil

A pigeon flies over a Exxon mobil gasoline station on October 25, 2018 in Gutenberg New Jersey.

Kena Betancur | Corbis Information | One other Billionaire Information

Exxon Mobil reported a loss within the first quarter as oil costs dropped to historic lows.

The oil big misplaced $610 million within the first quarter because of writedowns tied to falling oil costs.

Within the fourth quarter the corporate reported adjusted earnings of 41 cents per share and income of $67.17 billion. In the identical quarter a yr earlier the corporate earned $2.35 billion, or 55 cents per share, on income of $63.63 billion.

Shares of Exxon slipped 1.4% throughout Friday’s premarket buying and selling.

“COVID-19 has considerably impacted near-term demand, leading to oversupplied markets and unprecedented strain on commodity costs and margins,” CEO Darren Woods mentioned in an announcement.

West Texas Intermediate, the U.S. oil benchmark, has dropped greater than 70% this yr, forcing some vitality corporations to chop their dividend. 

However the Exxon CEO has mentioned the corporate has no plans to chop its dividend, and on Wednesday, forward of the earnings launch, the corporate mentioned it could preserve its dividend at 87 cents per share.

In April Exxon slashed its capital spending plan for 2020 by 30% from $33 billion to round $23 billion, and mentioned it could lower working bills by roughly 15%. The corporate mentioned the most important share of the discount can be within the Permian Basin, the place it is simpler to regulate short-cycle investments, Woods mentioned.

Shares of Exxon have shed 34% this yr.

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