Exxon Mobil Warned Of Major Losses In The Second Quarter Due To Falling Oil Prices
Exxon Mobil Corp., the largest oil and gas company in the United States, has warned of significant losses in its core business areas in the second quarter of 2020, according to WSJ.
Exxon's mining division lost between $ 2.5 billion and $3.1 billion in the past quarter as a result of falling oil and gas prices. In the refining sector, losses were probably between $800 million and $1.2 billion, taking into account the decline in refining margins, the company said.
In the first quarter of 2020, Exxon made a profit of $536 million in its oil and gas production division and a loss of $611 million in refining.
The company recorded a net loss in January-March for the first time in 30 years, writing down the value of assets by $2.9 billion. At the end of the second quarter, Exxon is likely to announce a loss again.
According to the consensus forecast of experts surveyed by Bloomberg, Exxon's net loss in the second quarter was $0.55 per share ($0.14 per share in the first quarter). Cowen & Co. analysts forecast a loss of $0.69 per share. The company will publish its financial statements for April-June on July 31.
The International Energy Agency (IEA) estimates that global oil demand declined by 18% in the second quarter in the face of the coronavirus pandemic and the quarantine measures imposed to contain it.
The average cost of WTI oil, according to FactSet, in the last quarter was about $29 per barrel compared to $46 per barrel in the first quarter, the average cost of natural gas - $1.77 per 1 million British thermal units (BTU) against $1.87 per 1 million BTU.