Page 12 - NorthAmOil Week 44 2020

NorthAmOil PERFORMANCE NorthAmOil

Chevron, ExxonMobil report

third-quarter losses

US US-BASED super-majors Chevron and Exxon- equivalent per day (boepd) during the third
Mobil have reported their results for the third quarter, which marked a 1% increase on the sec-
quarter of 2020, with both announcing losses ond quarter. The company said its production
as they continue to be affected by the industry levels continued to reflect demand impacts from
downturn and ongoing coronavirus (COVID- COVID-19.
19) pandemic. Chevron, for its part, reported a third-quarter
ExxonMobil reported a third-quarter net loss net loss of $207mn, or $0.12 per diluted share,
of $680mn, or $0.15 per diluted share, compared down from a profit of $2.58bn in the same quar-
with earnings of $3.17bn in the same quarter of ter of 2019. However, this was up considerably ExxonMobil is
2019. However, sequentially, this marked an from a loss of $8.27bn in the second quarter of
improvement of $400mn on the second quar- this year, which had been exacerbated by impair- cutting 2020
ter of this year, when ExxonMobil had a loss of ment charges.
$1.08bn. On an adjusted basis, Chevron achieved a capex from
The super-major said it was on track to third-quarter profit of $201mn, but its revenue
exceed its targets for capital and cash expense fell 32% year on year from $36.1bn a year ago $33bn to
reductions. Its third-quarter capital and explo- to $24.5bn. $23bn, while
ration expenditures came to $4.1bn, down from The super-major said that in the third quarter,
$7.7bn a year ago and $5.3bn in the second quar- its capex was down 48% y/y. Over the first nine also reducing
ter of this year. ExxonMobil is cutting 2020 capex months of 2020, it spent $10.3bn, compared with
from $33bn to $23bn, while also reducing cash $15.0bn over the same period of 2019. cash operating
operating expenses by about 15%. It is planning Chevron’s third-quarter output amounted
further reductions in 2021 and warned employ- to 2.83mn boepd, down 7% y/y. The company expenses by
ees last week that it would lay off 1,900 staff in the attributed the decrease primarily to curtailed about 15%.
US, primarily in the Houston area. production in response to low commodity prices
The company also warned that $25-30bn and asset sales, saying it had been partially offset
worth of dry gas assets in North America could by net output increases at some of its operations.
be written down following a re-assessment of A significant third-quarter milestone was
how these properties fit into its dry gas develop- Chevron was agreeing to acquire Noble Energy,
ment plans. ExxonMobil anticipates completing with the deal valued at $5bn, or $13bn includ-
the assessment in the fourth quarter of this year. ing debt, upon its completion at the start of the
ExxonMobil produced 3.7mn barrels of oil fourth quarter.™

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