Even though it was able to benefit from higher oil prices and improved chemical margins in the fourth quarter of 2020, American oil giant, ExxonMobil says it will still be forced to write down assets up to US$20billion.
In its latest filing with the United States Securities and Exchange Commission, Exxon stated that higher prices and margins would only aid fourth-quarter results, but the gains would be overshadowed by the write-down. Guyana Standard would have reported that the oil major posted losses in the first three quarters of 2020 on an ill-timed spending increase that collided with a downturn in fuel demand and prices.
Following a perusal of its filing from Wednesday last, it was noted that ExxonMobil expects higher prices will sequentially lift its oil and gas operating results between US$200 million and US$1 billion.
The filing also signalled another operating loss in refining, but higher chemicals margins drove operating profit in that unit by between US$200 million and US$400 million. In the prior quarter, refining posted a US$231 million loss while chemicals turned a US$661 million profit.
Since last year, ExxonMobil began providing a snapshot of its key businesses after the end of each quarter to give investors insight into operations. Official results for the fourth quarter are scheduled to be released on February 2, 2021.
