Exxon Mobil records loss

U.S. oil giant Exxon Mobil said it recorded a loss of $20.1 billion, or $4.7 per share, in the fourth quarter of 2020, but the company's shares are up 2% in premarket trading.



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There is no negative reaction in the newspaper, as the news about the planned write-off of assets was published by the company in early December. As a result, the write - down amounted to almost $20 billion, so fourth-quarter profit was $110 million, or $0.03 per share, exceeding analysts ' forecast of $0.01. Production in oil equivalent in the fourth quarter was 3.7 million barrels per day, which corresponds to the levels of the third quarter.

For the first time in its public history, the company recorded an annual loss due to the negative impact of the pandemic on the oil market. It made $ 22.44 billion, compared with a profit of $14.34 billion in 2019.

All four quarters of 2020, Exxon recorded losses.

Expectations

The company expects that in 2021, cash flow will cover capital expenditures while maintaining a dividend and a strong balance sheet based on the fact that the price of Brent crude oil will be $ 50 per barrel or higher. "If prices and margins fall below these levels, capital expenditures may be further reduced to ensure that the dividend is covered and that the balance sheet remains stable at Brent crude prices of approximately $ 45 per barrel," the press release notes.

The company's current forward dividend yield exceeds 7%. Exxon did not raise its dividend in 2020 for the first time in many years.

New people?

Under pressure from active investors, Exxon Mobil announced that a new member will join the Board of Directors — Tan Sri Van Zulkifli Van Ariffin, the former head of Malaysia's Petronas. The company also said it is in talks with a number of other board candidates as part of an ongoing "renewal" process and will take further action in the near future.