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HOUSTON, May 1 (Reuters) - Exxon Mobil Corp joined a
parade of oil companies posting downbeat results as it posted a
first-quarter loss after a nearly $3 billion inventory writedown
on plunging oil demand and low prices.
Global fuel demand has tumbled by a third on
coronavirus-related lockdowns and business shutdowns. Oil giants
have largely reported losses because of weaker margins and
writedowns from an oil glut that has has sent prices to historic
lows.
Exxon said profit fell in every business apart from
chemicals, which benefited from low oil and gas prices.
"COVID-19 has significantly impacted near-term demand,
resulting in oversupplied markets and unprecedented pressure on
commodity prices and margins,” said Exxon Chief Executive Darren
Woods.
The company's results echo those of rivals Royal Dutch Shell
and BP, though Chevron reported a
first-quarter profit gain by virtue of asset sales.
The largest oil companies have largely sought to protect
investor payouts by increasing borrowing or cutting expenses.
Exxon, BP, and Chevron maintained their quarterly payouts while
Shell cut its dividend for the first time since World War
Two.
Exxon posted a loss of $610 million, or 14 cents per share,
in the quarter, compared with a profit of $2.35 billion, or 55
cents per share, a year earlier.
Its shares were down 2% at $45.49 in pre-market trading. The
stock is down 34% this year.
Exxon's production rose slightly to about 4 million barrels
of oil equivalent per day (boepd) from 3.98 million boepd.
(Reporting by Arathy S Nair in Bengaluru and Jennifer Hiller in
Houston; Editing by Arun Koyyur and David Goodman)
BP (BP.)
