Exxon Mobil reports loss of $610 million, as COVID-19 weighs on oil demand

Exxon Mobil

Exxon Mobil Corp. XOM-2.09% reported Friday that it swung to a first-quarter loss, as a result of a large market-related writedown, and revenue that fell 12%, as the COVID-19 pandemic significantly impacted demand, resulting in oversupplied market and “unprecedented” pressure on commodity prices.

According to the Market Watch, The stocΔk fell 1.9% in premarket trading. The oil giant reported a net loss of $610 million, or 14 cents a share, after net income of $2.35 billion, or 55 cents a share, in the year-ago period. Excluding a $2.9 billion charge, which reflected the valuation impacts from lower commodity prices and asset impairments, adjusted earnings per share fell to 53 cents from 55 cents. Revenue fell to $56.16 billion from $63.63 billion a year ago, and from $67.17 billion in the sequential fourth quarter.

The FactSet consensus for EPS was 1 cent and for revenue was $53.5 billion. Exxon said it was reducing 2020 capital spending by 30% to $23 billion, and its operating expenses by 15%.

The company said its objective during the COVID-19 crisis is to “continue investing in industry-advantaged projects to create value, preserve cash for the dividend, and make appropriate use of its balance sheet.”

The stock has dropped 33.4% year to date through Thursday, while crude oil futures CL00+6.95% have shed 69.2% and the Dow Jones Industrial Average DJIA-1.17% has declined 14.7%.