ExxonMobil Corp. (XOM) - Get Report posted a wider-than-expected second quarter loss Friday, following on from rival Chevron Corp (CVX) - Get Report, as the global coronavirus pandemic continues to blunt energy and commodity demand.
Exxon said its adjusted loss for the three months ending in June was pegged at 70 cents per share, down from a profit of $1.77 per share over the same period last year and outside the Street consensus forecast of -.62 cents per share. Group revenues, Exxon said, fell 52.8% to $32.6 billion, a figure that also missed analysts' estimates of a $38.16 billion tally.
"The global pandemic and oversupply conditions significantly impacted our second quarter financial results with lower prices, margins, and sales volumes. We responded decisively by reducing near-term spending and continuing work to improve efficiency by leveraging recent reorganizations," said Darren Woods.
"The progress we've made to date gives us confidence that we will meet or exceed our cost-reduction targets for 2020 and provides a strong foundation for further efficiencies," he added. "We have increased debt to a level we feel is appropriate to provide liquidity, given market uncertainties. Based on current projections, we do not plan to take on any additional debt."
Exxon shares were marked 2% lower in early trading following the earnings release to change hands at $41.06 each, a move that would extend the stock's year-to-date decline to around 40%.
West Texas Intermediate crude prices averaged $40.84 per barrel over the three months ending in June, down 29% from the same period last year. Prices were also hit by the biggest single-day decline on record, which took crude prices to -$37.63 per barrel in mid-April, as a lack of physical storage space wreaked havoc on global crude markets just as futures contracts for the month were set to expire.
Chevron said its adjusted loss for the three months ending in June was $1.59 per share, with revenues falling 55.5% to $16 billion, again missing analysts' estimates of a $22.1 billion tally.
Chevron shares were marked 3.6% lower at $82.68 each, a move that extends the stock's year-to-date decline to around 32%.