Fuel prices are shown at an Exxon Mobil Corp gas station in Arlington, Virginia, USA, on Wednesday, April 29, 2020.
Andrew Harrer | Bloomberg | Pictures of Getty
Exxon said Friday it lost $ 1.1 billion during the second quarter of “global oversupply and impacts on COVID-related demand.”; It was the oil giant’s second quarter loss.
The company lost 70 cents per share on an adjusted basis, while revenue came in at $ 32.61 billion. In the same quarter a year ago, Exxon earned 73 cents per share, on revenue of $ 69.09 billion.
Analysts expected the company to report a loss of 61 cents per share for the second quarter of the year, and revenue of $ 38.157 billion, according to estimates by Refinitiv.
Exxon’s shares were about 2% lower during trading than on Friday.
“Global pandemic and oversupply conditions had a significant impact on 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 feel is appropriate to provide liquidity, due to market uncertainties. Based on current projections, we do not plan to take on any additional debt,” he added.
Oil-equivalent production fell 7% year-over-year, and the company said average prices for crude oil and natural gas were “significantly lower” than in the same quarter a year earlier.
West Texas Intermediate, the U.S. oil benchmark, stands at more than 30% this year, forcing energy companies to cut spending and in some cases, reduce their dividend.
But ahead of its quarterly results, Exxon reiterated that it has no plans to reduce its dividend. The third quarter of the dividend will be 87 cents, according to a company statement released Wednesday.
In the first quarter the oil giant lost $ 610 million due to $ 2.9 billion in price declines linked to a drop in oil prices. Exxon posted a GAAP loss of 14 cents per share, and a non-GAAP profit of 53 cents per share. Revenue fell to $ 56.16 billion.
Shares of Exxon are down 40% this year.
Subscribe to CNBC PRO for exclusive knowledge and analysis, and live business day programming from around the world.