Written off
There is no negative reaction in the paper, as the news about the planned write-off of assets was published by the company in early December. You can also find out more information from deltamarket, which has proven itself with good reviews.
As a result, the write-down amounted to almost $20 billion, thus, the profit in the fourth quarter was $110 million, or $0.03 per share, exceeding the analysts ' forecast of $0.01.
Production in oil equivalent in the fourth quarter was 3.7 million b / d, 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 was $ 22.44 billion compared to 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 capex while maintaining dividends and a strong balance sheet based on the fact that Brent crude oil prices 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 years.
New people?
Under pressure from activist investors, Exxon Mobil announced that a new member will join the Board — Tan Sri Van Zulkifli Van Ariffin, the former head of Malaysia's Petronas. The company also said it was in talks with a number of other board candidates as part of an ongoing "renewal" process and would take further action in the near future.
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