As of Friday, Exxon reported its second straight quarterly losses.
The mega oil company lost $1.1 billion during the second quarter during global oversupply and the impacts from COVID-19.
The continuing global pandemic and oversupply issues have significantly caused an impact on the second quarter financial results from lower prices, margins, and sales volumes according to Darren Woods, Exxon CEO.
This past Friday, Exxon said it lost $1.1 billion over the second quarter amidst the coronavirus and global oversupply which is causing an enormous impact. To date, the company lost 70% per share on an adjusted basis with revenue coming in at $32.61 billion. During the same quarter last year, Exxon earned 73 cents each share on revenue reaching $69.09 billion.
According to estimates from Refinity Capital, which is an independent Canadian investment and advisory firm, analysts expect Exxon to report a loss of 61 centers per share for the second quarter and revenue of $38.157 billion.
While spending the day trading in the red, shares of Exxon rallied and finished at 0.5%.
The oversupply and global pandemic issues have significantly impacted the second quarter financial results with lower prices, margins, and sales volumes. Darren Woods said they have increased debt to a level they believe is appropriate to offer liquidity due to market uncertainties. Based on the current projections they do not plan to take on any more debt.
Equivalent oil products fell 7% year over year and the company believes the average price of crude oil and natural gas has significantly dropped from the same time last year.
West Texas Intermediate which is the U.S. oil benchmark is down less than 30% this year which has forced energy companies to cut back on spending and cut their dividend in some cases.
Exxon said that it has no plans to cut its dividend. The third quarter dividend is expected to be 87 cents according to the latest statement on Wednesday. In the first quarter, Exxon lost $610 million due to $2.9 billion in write-down tied to the falling oil prices. They posted a GAAP loss of 14 cents per share and a non-GAAP profit of 53 cents per share. Their revenues fell to $56.16 billion.
To date, their shares are down 40%. We will be watching Exxon over the next quarter and see if they will turn things around and recover.