ExxonMobil reported a $680 million quarterly loss on Friday and announced plans for steep spending cuts, which comes just a day after it revealed plans for major layoffs.
Why it matters: The announcements signal how the company, which has made huge investments in supply expansions in recent years, is struggling to adjust to the sector's new reality.
By the numbers: The third consecutive quarterly loss is smaller than the $1.1 billion loss in Q2, but this morning's announcement nonetheless underscores the oil giant's tough path as the company revealed even deeper planned cost cuts.
- Exxon also said it's now planning capital spending of $16 billion to $19 billion in 2021, down from $23 billion this year — which itself was a steep cut from pre-pandemic plans.
Driving the news: The result follows yesterday's announcement they will cut 1,900 U.S. staff as part of a wider global reduction of as many as 14,000, which is roughly 15% of their workforce, including contractors.
- Reductions will come from retirements, layoffs and lower hiring. Reuters has more.
Where it stands: Chevron also reported a $201 million Q3 loss this morning, far smaller than the prior quarter's bleed but a stark contrast to its $2.6 billion profit in Q3 2019.
- CEO Michael Wirth noted low commodity prices and pandemic-curtailed demand.
- “We remain focused on what we can control — safe operations, capital discipline and cost management,” he said in a statement.
Meanwhile, France-based giant Total SE posted a $202 million profit.
- Bloomberg notes that Total is faring better during the pandemic than its rivals, but points out that headwinds remain.
- "The company boasted of its resilience to oil at $40 in a week when prices slumped below that level as the second wave of the pandemic took hold," they report.
