Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Exxon signals up to $20 billion writedown to overwhelm 4th-qtr gains in oil, chemicals

CommoditiesDec 31, 2020 05:36AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: An Exxon sign is seen at a gas station in the Chicago suburb of Norridge

HOUSTON (Reuters) -Exxon Mobil Corp signaled in a regulatory filing that higher oil and gas prices and improved chemicals margins would aid fourth quarter results, but the gains would be overshadowed by an up to $20 billion asset writedown.

The largest U.S. oil producer has posted losses in the first three quarters of 2020 on an ill-timed spending increase that collided with a downturn in fuel demand and prices. It faces a proxy fight next year by an activist investor calling for deeper cuts, new directors and a refocusing on cleaner fuels.

The filing after the market closed on Wednesday showed Exxon (NYSE:XOM) expects higher prices will sequentially lift its oil and gas operating results by between $200 million and $1 billion. That business suffered a $383 million operating loss in the third quarter.

The filing also signaled another operating loss in refining, but higher chemicals margins drove operating profit in that unit by between $200 million and $400 million. In the prior quarter, refining posted a $231 million loss while chemicals turned a $661 million profit.

The writedown of mostly natural gas properties was previously estimated at between $17 billion and $20 billion and the filing narrowed the range of the impairment charge.

Exxon last year began providing a snapshot of its key businesses after the end of each quarter to give investors insight into operations. Many of those prior updates led Wall Street to lower profit forecasts.

Official results are scheduled to be released Feb. 2.

During the final quarter, the company outlined plans for deeper cost cuts that will chop capital spending by at least $10 billion this year and next, and the first stages of a 15% workforce reduction that will continue through next December.

Adjusted fourth-quarter loss could hit $3.47 billion, or 61 cents per share, according to Refinitiv IBES data, compared with a year-earlier profit of $5.69 billion, or $1.33 per share.

Exxon posted the details after the market close. Its shares finished up 33 cents at $41.60 but are down 41% year to date.

Exxon signals up to $20 billion writedown to overwhelm 4th-qtr gains in oil, chemicals
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Rehman Aziz
Rehman Aziz Dec 31, 2020 8:46AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Insecisive news, XOM is good long term bet
Hunt Richardson
Hunt Richardson Dec 30, 2020 6:43PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
buy on the news...wait, what?!
Sheldon Cooper
Sheldon Cooper Dec 30, 2020 6:34PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
+4% tomorrow
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email