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Exxon (XOM) Q2 2020 profit

Fuel prices are shown at the Exxon Mobil Corp. in Arlington, Virginia, USA, on Wednesday, April 29, 2020.

Andrew Harer Bloomberg | Getty images

Exxon said on Friday that it lost $ 1.1 billion in the second quarter amid “global oversupply and the impact of demand related to COVID.” This was the second consecutive loss of the oil giant.

The company lost 70 cents a share on an adjusted basis, while revenue reached $ 32.61

billion. In the same quarter a year ago, Exxon earned 73 cents a share on revenue of $ 69.09 billion.

Analysts expect the company to report a loss of 61 cents per share for the second quarter and revenue of 38.157 billion dollars, according to estimates by Refinitiv.

Exxon shares were about 2% lower during trading before trading on Friday.

“Global pandemic conditions and oversupply significantly affected our financial results in the second quarter with lower prices, margins and sales volumes,” said Darren Woods, CEO of Exxon, in a statement.

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

Oil equivalent production fell 7% year-on-year, and the company said average crude oil and natural gas prices were “significantly lower” than in the same quarter a year earlier.

West Texas Intermediate, the U.S. oil rating, has fallen more than 30 percent this year, forcing energy companies to cut costs and in some cases cut dividends.

But ahead of its quarterly results, Exxon reiterated that it has no plans to reduce its dividend. The dividend for the third quarter will be 87 cents, according to a company statement released Wednesday.

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

Exxon shares have fallen 40% this year.

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