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business Saturday 31 OctOber 2020
Losses mount for oil companies as pandemic grips economy

By CATHY BUSSEWITZ senior analyst at Edward
AP Business Writer Jones. "Everyone else either
NEW YORK (AP) — Exxon stayed in the black or got
Mobil reported its third con- back into the black from
secutive quarter of losses as the abyss of the second
the global pandemic cur- quarter. I think it's telling
tailed travel and crippled that they're the only ones
global economic activity. still running in the red."
The energy giant on Friday The Irving, Texas, company
posted a $680 million third- produced 3.7 million bar-
quarter loss and revenue rels of oil per day in the
tumbled to $46.2 billion, third quarter, up 1% from
down from $65.05 billion the second quarter. But
during the same quarter production is down slightly
last year. from the same period last
The string of losses and what year.
by almost all counts will be "We are not canceling any
a money-losing year is new projects that are in execu-
territory for Exxon Mobil, tion or in the funding pro-
which has not posted an cess," said Andrew Swiger,
annual loss since Exxon and This April 25, 2017, file photo, shows an Exxon service station sign in Nashville, Tenn. chief financial officer, in a
Associated Press
Mobil merged in 1999. conference call Friday.
"This is a business that's people. Air travel this year of 2019. would cut capital expendi- Several analysts on the call
made a billion dollars a fell to levels not seen in the Chevron also announced tures to between $16 billion questioned why Exxon will
quarter on average from jet age and the economy job cuts Thursday after and $19 billion next year. continue paying a divi-
2011 to 2018 and it's had a suffered its worst contrac- closing on its acquisition That would follow a year in dend given the losses it's
rough go," said Peter Mc- tion in decades as factories of Noble Energy earlier which Exxon reduced capi- suffering.
Nally, global sector lead for and other big energy con- this month, saying it would tal spending by 30%, to $23 "Our objective is to main-
industrials, materials and sumers shut down. All indi- trim the headcount at that billion. tain the dividend, advance
energy at Third Bridge, a re- cations point to a Thanks- company by about a quar- "We are on pace to the highest value invest-
search firm. giving celebrated close to ter. achieve our 2020 cost- ments, and maintain the
Already struggling with home, and in smaller num- "We remain confident in reduction targets and are debt at a cost- competitive
weak prices from oversup- bers this year. our long-term strategy and progressing additional sav- level," Swiger said.
ply, the pandemic has in- Exxon has begun slashing the fundamentals of our ings next year as we man- And the third quarter was
tensified the pain for oil and costs to offset falling en- business, and are taking age through this unprec- an improvement com-
gas companies. The price ergy demand, and that the necessary actions to edented down cycle," pared with the last, when
of U.S. benchmark crude means jobs. preserve value while pro- Woods said. oil futures crashed below
has fallen 40% since the A day after announcing tecting the balance sheet Those planned reductions zero. Exxon and Chevron
start of the year. The cost 1,900 job cuts, Exxon said and dividend," said Exxon might not be enough to lost a combined $9 billion.
for a barrel of oil tumbled on Friday that it plans to Mobil CEO Darren Woods appease some investors. Chevron on Friday swung
10% just this week as coro- cut 15% of its global work- in a prepared statement. Exxon was the only one of to a loss of $207 million af-
navirus infections surged in force by the end of next Exxon said Friday that it the super-majors to post a ter a quarterly profit of $2.9
the U.S. and abroad. year, about 11,250 jobs. may divest $25 billion to $30 loss this quarter, and is be- billion last year. Revenue
Commuting to work has The company employed billion in North American hind its peers in cost-cut- fell by $11 billion, to $24
largely ended for millions of 75,000 people at the end dry gas assets, and that it ting, said Jennifer Rowland, billion.q

Airbnb sets up endowment, council for hosts ahead of IPO

By DEE-ANN DURBIN hosts. sometimes been rocky.
AP Business Writer Airbnb will name a 15-mem- Earlier this year, hosts revolt-
Airbnb is setting up an en- ber host advisory board ed when Airbnb allowed
dowment fund to support that will meet monthly with guests to cancel their stays
its 4 million hosts as part of Airbnb leadership and and get full refunds amid
its upcoming initial public decide which projects to the pandemic. Airbnb later
offering. fund. The company said its promised $250 million to
The San Francisco-based initial board, which it will in- hosts to help make up that
home-sharing company troduce soon, will be made shortfall. It also held listen-
said it will set aside 9.2 mil- up of leaders from the host ing sessions with more than
lion shares for the endow- community. Eighty-five per- 3,000 hosts worldwide.
ment, which will start fund- cent will be from outside "Your frustration made me
ing projects when its value the U.S. and 55% will be see the gap that had grown
tops $1 billion. women, the company said. between us," Chesky wrote
"As we prepare for Airbnb Board members will serve in his letter. "'We needed This Feb. 22, 2018, file photo shows an Airbnb logo during an
to become a public com- for one year. The initial to get more connected to event in San Francisco. Airbnb is setting up an endowment fund
to support its hosts as part of its upcoming initial public offering.
pany, we want to institu- board will determine the you." Associated Press
tionalize our commitment process for selecting new The company said the en-
to hosting, and our invest- members in subsequent dowment is only one effort comment on other possible repairs after a hurricane,
ment in the host commu- years. to include hosts in its up- plans, including rewarding education or annual pay-
nity," Airbnb co-founder Airbnb depends on its hosts coming IPO, which is ex- hosts with shares. outs to outstanding hosts.
and CEO Brian Chesky said for its 7 million listings world- pected before the end of Airbnb said the endow- Hosts will be able to share
Friday in an open letter to wide. But relations have this year. Airbnb wouldn't ment could fund things like ideas with the council.q