ExxonMobil Corporation announced early this morning that it has suffered an estimated first quarter 2020 loss of US$610 million, or US$0.14 per share as a result of the COVID-19 pandemic. Excluding entitlement effects and divestments, the American oil giant said that oil-equivalent production was up 5 percent from the prior year, with Upstream liquids production up 9 percent on growth in the Permian and Guyana.
In response to market conditions, ExxonMobil said that it is reducing 2020 capital spending by 30 percent and cash operating expenses by 15 percent. Capital Expenditure is now expected to be approximately US$23 billion for the year, down from the previously announced guidance of $33 billion.
Chairman and Chief Executive Officer for ExxonMobil, Darren Woods was keen to note that while the company is managing through these challenging times, it is not losing sight of the long-term fundamentals that drive business. In this regard, he noted that economic activity will return, and populations and standards of living will increase, which will in turn drive demand for products and a recovery of the industry.
In light of the foregoing, he said that ExxonMobil’s capital allocation priorities remain unchanged. The Guyana Standard understands that the company’s objective is to continue investing in industry-advantaged projects to create value, preserve cash for the dividend, and make appropriate use of its balance sheet.
Woods said,“Today’s circumstances are certainly unique, but our people have the experience, our business has the scale, and we have the financial strength to see us through and emerge stronger than ever.”
To minimize risks presented by COVID-19 and maintain operations,Guyana Standard understands that ExxonMobil has implemented enhanced cleaning procedures and modified work practices at sites around the world. The company is also maximizing production of products critical to the global response, including isopropyl alcohol, which is used to manufacture hand sanitizer, and polypropylene, which is used to make protective masks, gowns and wipes.