Summary
ExxonMobil Corporation reported a net loss attributable to shareholders of $1.08 billion ($0.26 per diluted share) for the second quarter of 2020, a significant decrease compared to the $3.13 billion profit ($0.73 per diluted share) in the same period of 2019. This downturn was primarily driven by substantial declines in upstream realizations due to drastically lower commodity prices, exacerbated by the COVID-19 pandemic's impact on global demand. While the Downstream and Chemical segments showed some resilience, particularly due to favorable inventory adjustments and reduced expenses, they could not offset the upstream segment's weakness. Despite the challenging operating environment, ExxonMobil took proactive steps to manage its financial position. The company significantly reduced its capital and exploration expenditures, and also issued substantial amounts of long-term debt to bolster liquidity, increasing its total debt and debt-to-capital ratio. Management anticipates continued lower earnings and operating cash flow compared to 2019 unless industry conditions improve significantly in the latter half of the year. The company is closely monitoring long-term asset impairment risks and potential reductions in proved reserves.
Financial Highlights
43 data points| Revenue | $32.28B |
| SG&A Expenses | $2.41B |
| Operating Expenses | $34.24B |
| Interest Expense | $317.00M |
| Net Income | -$1.08B |
| EPS (Basic) | $-0.26 |
| EPS (Diluted) | $-0.26 |
| Shares Outstanding (Basic) | 4.27B |
Key Highlights
- 1ExxonMobil reported a net loss of $1.08 billion for Q2 2020, a significant decline from a $3.13 billion profit in Q2 2019.
- 2Earnings per diluted share for Q2 2020 were a loss of $0.26, compared to earnings of $0.73 in Q2 2019.
- 3The Upstream segment experienced a loss of $1.65 billion in Q2 2020, primarily due to lower oil and gas realizations.
- 4Downstream segment earnings increased to $976 million in Q2 2020, aided by a favorable inventory adjustment.
- 5Chemical segment earnings rose to $467 million in Q2 2020, driven by higher margins and lower expenses.
- 6The company significantly reduced capital and exploration expenditures to $5.3 billion in Q2 2020, down from $8.1 billion in Q2 2019.
- 7Total debt increased to $69.5 billion at the end of Q2 2020, up from $46.9 billion at year-end 2019, with the debt-to-capital ratio rising to 27.1%.