Exxon faces a loss for the quarter of US$2.3 billion. It would be the second this year after a US$610 million 1Q20 deficit. Results are due out 31 July.
The filing did not refer to asset writedowns. However, in a change from prior quarterly updates, Exxon noted the list may not include all charges. Shell outlined an up to US$22 billion charge and BP an up to US$17.5 billion writedown on the oil demand and price drops.
Exxon’s oil and gas operations will swing to a loss compared with 1Q20 because of sharply lower prices. That drop reduced the unit’s operating profit by between US$2.5 billion and US$3.1 billion, the company said in its investor snapshot of operations.
Refining results will fall by between US$800 million and US$1.1 billion compared with 1Q20 on weaker margins and logistics differentials, it said.
Exxon last quarter cut output by up to 400 000 bpd and capital spending by 30%, much of it in its shale business.