The price of fuel is shown at the Exxon Mobil Corp. gas station. in Arlington, Virginia, United States, on Wednesday, April 29, 2020.
Andrew Harrer | Bloomberg | Getty Images
Exxon said Friday that it lost $ 1.1 billion during the second quarter amid “global undersupply and the impacts of demand related to COVID.”; It was the second consecutive quarter of oil giant losses.
The company lost 70 cents per share on a tight basis, while revenue amounted to $ 32.61 billion. In the same quarter a year ago, Exxon earned 73 cents a share, with revenue of $ 69.09 million.
Analysts expected the company to report a loss of 61 cents per share during the second quarter and revenue of $ 38,157 million, according to Refinitiv estimates.
Exxon shares were about 2% lower during pre-Friday trading.
“Global pandemic and supply conditions significantly affected our second-quarter financial results with lower prices, margins and sales volumes,” Exxon CEO Darren Woods said in a statement.
“We have raised debt to a level that we believe is adequate to provide liquidity, given market uncertainties. Based on current projections, we do not plan to take on any additional debt,” he added.
Oil-equivalent production fell 7% year-on-year and the company said average crude oil and natural gas prices were “significantly lower” than the same quarter last year.
West Texas Intermediate, the U.S. oil benchmark, fell more than 30 percent this year, forcing energy companies to cut spending and, in some cases, cut their dividend.
But ahead of quarterly results, Exxon reiterated that it has no plans to cut its dividend. The third-quarter dividend will be 87 cents, according to a company statement released Wednesday.
In the first quarter, the oil giant lost $ 610 million due to the $ 2.9 billion drop related to the fall in the price of oil. Exxon reported a GAAP loss of 14 cents per share and a non-GAAP profit of 53 cents per share. Revenue fell to $ 56.16 billion.
Exxon shares have fallen 40% this year.
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