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Exxon, Chevron lose $887 million as pandemic pain continues

1 month 14 hours 51 minutes ago Friday, October 30 2020 Oct 30, 2020 October 30, 2020 8:21 AM October 30, 2020 in News
Source: Associated Press

NEW YORK (AP) — Exxon Mobil lost $680 million in the third quarter as the global pandemic curtailed travel throughout the world, diminishing the need for fuel.

Revenue tumbled to $46.2 billion, down from $65.05 billion during the same quarter last year.

The pandemic has taken a toll on the oil industry, which was already struggling with low prices and oversupply before the pandemic struck. The price of U.S. benchmark crude has fallen 40% since the start of the year.

“We remain confident in our long-term strategy and the fundamentals of our business, and are taking the necessary actions to preserve value while protecting the balance sheet and dividend,” said Darren W. Woods, CEO, in a news release. “We are on pace to achieve our 2020 cost-reduction targets and are progressing additional savings next year as we manage through this unprecedented down cycle.”

The The Irving, Texas, oil giant produced 3.7 million barrels of oil per day in the third quarter, up 1% from the second quarter.

Also on Friday, Chevron reported losses of $207 million after turning in a profit of $2.9 billion last year. It brought in $24 billion in revenues, down from $35 billion during the same period last year.

While painful, the third quarter was an improvement from the second, when oil prices crashed below zero and Exxon and Chevron lost a combined $9 billion.

Exxon said Thursday it would cut 1,900 jobs from its U.S. workforce, and Chevron said it would cut a quarter of the employees at Noble Energy.

Oil demand is expected to fall 8% globally this year, according to the International Energy Agency. While some demand has recovered since oil fell below $0 a barrel in April, countries are again locking down as the coronavirus surges anew across Europe and the U.S.

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