ExxonMobil’s Chairman, President, and Chief Executive Officer (CEO), Darren Woods, is yet to definitively state whether shareholders should look forward to dividend cuts in light of the economic pains unleashed on the industry by COVID-19.
During a recent conference call with shareholders, the official said the company is keen on ensuring investments in advantaged projects. Woods said, “That’s a priority because it maintains the foundation for a healthy and long-term business. We want to pay reliable and growing dividend, it’s our way of rewarding long-term shareholders and it shares our success over the years.”
When a strong balance sheet is maintained, Woods said that the company is able to rise through the ups and downs that it has historically seen in the market. He added that capital allocation priorities have been in place for many, many years while noting that ExxonMobil will continue to honour those priorities.
With respect to the short term environment, Woods said that the company has given priority to the dividends and so have not reduced that. He noted that instead, it has moved to cut operating expenses and to reduce capital, while preserving the value of that capital over the long-term.
Going forward, he said Exxon will have to see how the environment continues to grow.