• Natural Gas News

    ExxonMobil In Red for Third Straight Quarter


Cost-savings expected to bring workforce reductions

by: Dale Lunan

Posted in:

Natural Gas & LNG News, Americas, Daily Digest, Top Stories, Americas, Premium, Editorial, Corporate, Financials, News By Country, Canada, United States

ExxonMobil In Red for Third Straight Quarter

US supermajor ExxonMobil reported October 30 a Q3 2020 loss of $680mn, better than the $1.08bn loss in the preceding period but still its third consecutive quarterly loss this year. A year ago, it had Q3 earnings of $3.17bn.

Oil-equivalent production averaged 3.7mn b/d, up 1% from the previous quarter and reflecting Covid-19 demand impacts, including economic and government-mandated curtailments. Liquids production was up 2%, but natural gas production was down 1%, ExxonMobil said.

“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,” CEO Darren Woods said. “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.”

Natural gas production available for sale globally averaged 8.3bn ft3/day in Q3 2020, down from 9.04bn ft3/day in Q2 this year but up slightly from just under 8bn ft3/day in Q3 2019. Quarter-on-quarter increases came from Canada, Africa and Asia, while declines were reported in the US, Europe and Australia/Oceania.

Capital and exploration expenditures in Q3 2020 were $4.1bn, down from $7.7bn in Q2 and from $5.3bn in Q3 2019, and the company said it was on track to exceed its targets for reducing capital and cash expenses this year. More reductions are expected throughout 2021.

Some of the savings will come from workforce reductions. On October 29, ExxonMobil revealed that about 1,900 jobs would be eliminated in its US operations, mostly at its Houston headquarters.

Beyond that, however, media reports suggest cuts are coming at ExxonMobil’s Canadian subsidiary, ExxonMobil Canada, at its 76%-owned affiliate Imperial Oil, also headquartered in Canada, and throughout its European operations. Globally, ExxonMobil employs about 75,000 people.