Exxon’s revenue tank 29% in Q3 due to COVID 19 interruptions.
The oil giant reported a net loss of £524.20 million for the third quarter.
The US multinational plans to cut 1,900 jobs in the US.
Exxon Mobil Corp (NYSE: XOM) announced on Friday that it has slid into the red in the third quarter of the fiscal year. The company also announced that its revenues in the third quarter were down approximately 30% year-over-year. Exxon attributed its weak quarterly results to COVID-19 and its negative impact on the global oil industry.
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Exxon reports a net loss of £524.20 million for the third quarter
Exxon reported that the company closed the most recent quarter with a net loss of £524.20 million, or 11.56 pence per share. In the same quarter last year, the oil multinational reported £2.44 billion net profit or 57.82 pence per share.
Adjusted for non-recurring items, Exxon lost 13.88 pence per share in the third quarter, while the FactSet forecast an even greater loss of 20.04 pence per share. The oil company on Thursday announced plans to cut 1,900 jobs in the United States to cushion the economic blow of COVID-19.
In terms of revenue, the U.S. multinational saw a 29% decline in the third quarter to £35.61 billion on an annualized basis. The FactSet consensus for third quarter revenue was £34.98 billion. Exxon’s competitor, Chevron Corp, also announced on Friday that it had suffered a loss of £159 million in the third quarter.
Exxon announced this in a statement on Friday:
“Improved market conditions allowed for a full recovery in production, which was affected by economic cutbacks. The government-mandated cuts had a negative impact on third quarter results and are expected to continue into the fourth quarter.
Other prominent figures in Exxon’s earnings report
Other prominent figures in Friday’s Exxon earnings report include a 5.8% decline in oil and gas production in the third quarter to 3.67 million bpd (barrels per day). Exxon’s largest division, Exploration and Production, reported a third quarter loss of £295.25 million compared to a profit of £1.70 billion in the previous year.
Exxon’s chemicals business reported profits of £509.55 million in the last quarter, compared to £185.78 million a year ago. The Irving-based company estimated its loss from the refining business at £178.07 million. In the third quarter of the previous year it reported a net profit of £930 million from this segment.
At the time of writing this report, Exxon is valued at £107.46 billion and has a price-earnings ratio of 19.64.