- Exxon’s revenue tanks 29% in Q3 due to COVID-19 disruptions.
- The oil giant reports £524.20 million of net loss in the third quarter.
- The American multinational plans on cutting 1,900 jobs in the U.S.
Exxon Mobil Corp (NYSE: XOM) revealed to have swung to a loss in the fiscal third quarter on Friday. The company also said that its revenue in Q3 came in about 30% lower on a year over year basis. Exxon attributed its dovish quarterly performance to COVID-19 and its negative impact on the global oil industry.
Exxon opened a little under 2% down in the stock market on Friday. Shares of the company are now more than 50% down year to date. Here’s what you need to know about the different types of stock investments.
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Exxon reports £524.20 million of net loss in the third quarter
Exxon said that it concluded the recent quarter with £524.20 million of net loss that translates to 11.56 pence per share. In the comparable quarter of last year, the oil major had reported £2.44 billion of net income, or 57.82 pence per share.
Adjusted for one-time items, Exxon lost 13.88 pence per share in the third quarter versus an even broader 20.04 pence of loss per share expected, as per FactSet. The oil company expressed plans of cutting 1,900 jobs in the United States on Thursday to cushion the economic blow from COVID-19.
In terms of revenue, the American multinational posted a 29% annualised decline in Q3 to £35.61 billion. FactSet Consensus for revenue in the third quarter stood at £34.98 billion. Exxon’s peer, Chevron Corp also revealed to have swung to a loss of £159 million in Q3 on Friday.
Exxon said in a statement on Friday:
“Improved market conditions enabled full recovery of production impacted by economic curtailments. Government mandated curtailments negatively impacted third quarter results and are anticipated to continue in the fourth quarter.”
Other prominent figures in Exxon’s earnings report
Other prominent figures in Exxon’s earnings report on Friday include a 5.8% decline in oil and gas output in the third quarter to 3.67 million BPD (barrels per day). Its largest business, exploration and production, saw £295.25 million of loss in Q3 versus the year-ago figure of £1.70 billion in profit.
Exxon’s chemical business registered £509.55 million of earnings in the recent quarter as compared to £185.78 million last year. The Irving-based company valued its loss from refining business at £178.07 million. In the third quarter of the previous year, it had reported £930 million of net profit from this segment.
At the time of writing, Exxon is valued at £107.46 billion and has a price to earnings ratio of 19.64.