Exxon Mobil misplaced $1.1 billion in the second quarter, its financial ache deepening as the pandemic stored households on lockdown, diminishing the necessity for oil world wide.
The Irving, Texas-based oil big introduced in $32.6 billion in income in the course of the second quarter, lower than half of what it introduced in on the similar time final 12 months.
The quarter was one of many worst on report for the oil business. The value of a barrel of benchmark U.S. crude fell under $0 in April, a shocking downfall that had not been seen earlier than in the business. Producers had been pumping much more oil than the world was utilizing as world journey all however shut down, and storage tanks had been filling up. Exxon introduced that month that it could lower its capital spending funds by 30%, to $23 billion, and its money working bills by 15%, in 2020.
Oil costs have recovered considerably since, however have been caught at round $40 a barrel for weeks, fetching 30% lower than a barrel did a 12 months in the past and effectively under what most producers must make ends meet.
As a consequence, the U.S. oil business misplaced greater than 100,000 jobs since February, with 45,000 of these jobs shed by upstream oil and gasoline firms in Texas alone, based on Rystad Energy, a consulting agency.
“The world pandemic and oversupply circumstances considerably impacted our second quarter monetary outcomes with decrease costs, margins, and gross sales volumes,” stated Darren Woods, chairman and CEO, in a press release Friday. “We responded decisively by lowering near-term spending and persevering with work to enhance effectivity by leveraging latest reorganizations.”
Exxon Mobil Corp. produced 3.6 million barrels of oil-equivalent, down 7% from final 12 months. That included a 12% drop in pure gasoline manufacturing.
Chevron Corp. misplaced $8.27 billion in the course of the quarter, a pointy distinction to the $4.Three billion it introduced in throughout the identical quarter final 12 months. The San Ramon-based oil big introduced in $13.49 billion in income, a couple of third of what it introduced in final 12 months.
“The previous few months have offered distinctive challenges,” stated Michael Wirth, Chevron’s chairman of the board and CEO, in a press release. “The financial affect of the response to COVID-19 considerably decreased demand for our merchandise and lowered commodity costs.”
Phillips 66, the Houston-based oil refining and logistics firm, misplaced $141 million in the course of the quarter.