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Exxon stories losses for the second consecutive quarter

Fuel prices will be displayed on April 29, 2020 at an Exxon Mobil Corp. service station in Arlington, Virginia, United States.

Andrew Harrer | Bloomberg | Getty Images

Exxon announced on Friday that it had lost $ 1.1 billion in the second quarter because "global oversupply and COVID-related demand are impacting". It was the second quarter of the oil giant's losses in a row.

The company lost an adjusted 70 cents per share, while sales were $ 32.61 billion. In the same quarter a year ago, Exxon earned 73 cents per share on sales of $ 69.09 billion.

Analysts expect Refinitiv to report a second-quarter loss of 61 cents a share and sales of $ 38.157 billion in the second quarter.

After trading in the red for much of the day, Exxon's shares rebounded at the close and ended the session 0.5% higher.

"Global pandemic and oversupply conditions have significantly impacted our second-quarter financial results with lower prices, margins and sales volumes," said Darren Woods, Exxon's CEO, in a statement.

"We have increased debt to a level that we think is appropriate to provide liquidity given the market uncertainties. Based on current forecasts, we do not plan to incur additional debt," he added.

Oil equivalent production decreased 7% year over year, and the company said average crude oil and natural gas prices were "significantly lower" than in the same quarter last year.

West Texas Intermediate, the US oil benchmark, fell more than 30% this year, forcing energy companies to cut spending and, in some cases, cut their dividend.

Before the quarterly results, however, Exxon reiterated that there are no plans to cut the dividend. The third quarter dividend will be 87 cents, according to a corporate statement released on Wednesday.

In the first quarter, the oil giant lost $ 610 million due to $ 2.9 billion in write-downs related to falling oil prices. Exxon recorded a GAAP loss of 14 cents per share and a non-GAAP profit of 53 cents per share. Sales fell to $ 56.16 billion.

Exxon shares fell 40% this year.

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