Summary
ExxonMobil's third-quarter 2020 Form 10-Q filing reveals a significant downturn in financial performance compared to the prior year, largely attributed to the economic impact of the COVID-19 pandemic on global demand for petroleum and petrochemical products. The company reported a net loss for the quarter and the year-to-date period, a stark contrast to the profitability seen in 2019. This performance decline was driven by lower commodity price realizations across its Upstream segment, reduced margins in its Downstream operations, and the lingering effects of market volatility. In response to these challenging market conditions, ExxonMobil has implemented substantial reductions in capital and operating expenditures, and has also increased its debt levels to strengthen liquidity. Despite these measures and a degree of recovery in consumer and business activity, the outlook remains uncertain, with the company anticipating that unfavorable economic impacts may persist into 2021. The company is actively managing its portfolio, with potential for significant impairment charges on certain long-lived assets, particularly in the North American dry gas portfolio, depending on the outcome of its annual planning process.
Financial Highlights
43 data points| Revenue | $45.42B |
| SG&A Expenses | $2.44B |
| Operating Expenses | $46.57B |
| Interest Expense | $279.00M |
| Net Income | -$680.00M |
| EPS (Basic) | $-0.15 |
| EPS (Diluted) | $-0.15 |
| Shares Outstanding (Basic) | 4.27B |
Key Highlights
- 1ExxonMobil reported a net loss of $680 million ($0.15 per diluted share) for the third quarter of 2020, compared to a net income of $3.2 billion ($0.75 per diluted share) in the same period of 2019.
- 2For the first nine months of 2020, the company incurred a net loss of $2.4 billion ($0.55 per diluted share), a significant decline from a net income of $8.7 billion ($2.03 per diluted share) in the first nine months of 2019.
- 3Total revenues and other income decreased to $46.2 billion in Q3 2020 from $65.0 billion in Q3 2019, and to $135.0 billion for the nine months ended Sep 30, 2020, from $197.8 billion in the prior year period.
- 4Capital and exploration expenditures were reduced significantly, totaling $16.6 billion for the first nine months of 2020, down from $22.7 billion in the same period of 2019, with further reductions planned for 2021.
- 5The company has increased its debt, with total debt rising to $68.8 billion at the end of Q3 2020 from $46.9 billion at year-end 2019, leading to a higher debt-to-capital ratio of 27.1% from 19.1%.
- 6The Upstream segment reported a loss of $383 million for Q3 2020, impacted by significantly lower crude oil and natural gas realizations, a sharp contrast to the $2.2 billion profit in Q3 2019.
- 7The Chemical segment showed resilience, with earnings increasing to $661 million in Q3 2020 from $241 million in Q3 2019, driven by higher margins and favorable non-operational impacts.