Results included a positive noncash inventory valuation adjustment from rising commodity prices of US$1.9 billion. Capital and exploration expenditures were US$5.3 billion, nearly US$2 billion lower than first quarter reflecting previously announced spend reductions.
Oil-equivalent production was 3.6 million bpd, down 7% from 2Q19, including a 3% decrease in liquids and a 12% decrease in natural gas, mainly reflecting the impacts of COVID-19 on global demand including economic and government mandated curtailments.
“The global pandemic and oversupply conditions significantly impacted our second quarter financial results with lower prices, margins, and sales volumes. We responded decisively by reducing near-term spending and continuing work to improve efficiency by leveraging recent reorganisations,” said Darren W.Woods, chairman and CEO.
“The progress we’ve made to date gives us confidence that we will meet or exceed our cost-reduction targets for 2020 and provides a strong foundation for further efficiencies.”
“We have increased debt to a level we feel is appropriate to provide liquidity, given market uncertainties. Based on current projections, we do not plan to take on any additional debt.”
The company has identified significant potential for additional reductions and is undertaking a comprehensive evaluation across the businesses on a country-by-country basis.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/31072020/exxonmobil-reports-us11-billion-loss-in-2q20/