Home Business Exxon, Chevron earnings gutted by virus-driven oil demand slump

Exxon, Chevron earnings gutted by virus-driven oil demand slump

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Wall Street expected Exxon Mobil Corp. and Chevron Corp. earnings to be bad, but not this bad.

America’s biggest energy companies delivered their worst set of quarterly results of the modern era, weighed down by the slump in oil prices and the global collapse in demand due to Covid-19.

But even so, the extent of what was disclosed Friday was at certain points almost breathtaking. Chevron announced multibillion dollar writedowns on its assets for the second time in a year, said it will cut the equivalent of 5% of its worldwide output during the current quarter and backtracked on plans to massively ramp up production from its prized Permian Basin shale holdings.

Exxon, not so long ago considered an almost unassailable profit-making machine, told investors its ambitious slate of expansion projects will be delayed and revealed it had failed to generate any operating cash flow in the second quarter.

Wall Street expected Exxon Mobil Corp. and Chevron Corp. earnings to be bad, but not this bad.

America’s biggest energy companies delivered their worst set of quarterly results of the modern era, weighed down by the slump in oil prices and the global collapse in demand due to Covid-19.

But even so, the extent of what was disclosed Friday was at certain points almost breathtaking. Chevron announced multibillion dollar writedowns on its assets for the second time in a year, said it will cut the equivalent of 5% of its worldwide output during the current quarter and backtracked on plans to massively ramp up production from its prized Permian Basin shale holdings.

Exxon, not so long ago considered an almost unassailable profit-making machine, told investors its ambitious slate of expansion projects will be delayed and revealed it had failed to generate any operating cash flow in the second quarter.

BLOOMBERG

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