(Adds analyst comment, detail by business unit)
HOUSTON, May 1 (Reuters) - Exxon Mobil Corp on
Friday joined a parade of oil companies posting downbeat results
on plunging oil demand and collapsing prices, reporting a $610
million first-quarter loss after a nearly $3 billion inventory
writedown.
Global fuel demand has tumbled by a third on
coronavirus-related lockdowns and business shutdowns. Oil giants
largely have reported losses on weaker margins and writedowns
from an oil glut that has sent prices to historic lows.
All of Exxon's businesses posted lower profits or wider
losses except for chemicals, where low oil and gas prices lifted
earnings from a year earlier.
"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 due to 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 has cut this year's project spending by $10 billion
and expects to reduce oil and gas output by 400,000 barrel per
day in line with rivals. Chevron also plans to cut as much as
300,000 bpd this month and up to 400,000 in June.
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.
Excluding charges, adjusted profit was 53 cents a share,
above Wall Street's forecast for an adjusted profit of 18 cents.
Earnings from oil and gas production fell 91% from a year
ago on weak oil prices, but benefited from higher volumes.
Exxon's U.S. shale production was up 56% from a year-ago.
Its refining business, while swinging to a $611 million
operating loss on weak demand and inventory charges, was aided
by lower costs and gains from trading, the company said.
The chemical unit posted a profit of $144 million, down 75%
from a year ago.
"The downstream in particular came in ahead of our
expectations," wrote RBC Capital Markets analyst Biraj
Borkhataria. The chemicals unit "was a better result than any
time in 2019," he added.
Its shares were down 1% at $46.02 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 Gary McWilliams in
Houston; Editing by Arun Koyyur, David Goodman and David
Gregorio)
BP (BP.)
