With all of the challenges of 2020, ExxonMobil focused on clamping down on expenses and managed to bring its full-year spending down nearly $10 billion from the year before.
Spending for the year
The company lowered annual cash operating expenses by $8 billion, with $3 billion of that being structural reductions. Exxon anticipates additional annual savings of $3 billion by 2023, resulting in total structural annual expense reductions of $6 billion, including savings from a global workforce reduction.
For the fourth quarter, Exxon lost $20.07 billion, or $4.70 per share. A year earlier, it earned $5.69 billion, or $1.33 per share.
Excluding an impairment charge and other items, Exxon lost 3 cents per share. Analysts were looking for a profit of a penny per share, according to a FactSet survey.
Revenue declined to $46.54 billion from $67.17 billion, nearly flat with Wall Street’s expectations.
Shares rose 4% in morning trading Tuesday.
Production volumes in the Permian averaged 418,000 oil-equivalent barrels per day, an increase of 42% from the prior year.
Exxon also said Tuesday that it was creating a new low carbon solutions unit to commercialize its extensive low-carbon technology portfolio. The division will advance plans for more than 20 new carbon capture and sequestration opportunities to enable large-scale emission reductions.
Michelle Chapman, The Associated Press