Exxon Mobil swings to £14.68 billion of net loss in fiscal Q4

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Feb 2, 2021
  • Exxon Mobil swings to £14.68 billion of net loss in the fiscal fourth quarter.
  • The American multinational oil firm generates £34.04 billion of revenue.
  • Exxon announces a new business to commercialise its low-carbon tech portfolio.

Exxon Mobil Corp. (NYSE: XOM) said on Tuesday that it swung to a massive net loss in the fiscal fourth quarter. Its adjusted profit in Q4, however, topped analysts’ forecasts. Exxon’s financial report comes only days after its peer, Chevron Corp published its earnings report.

Exxon Mobil shares were reported more than 1% up in premarket trading on Tuesday. The stock is now trading at £33.48 per share after recovering from a low of £23.09 per share in the last week of October 2020.

Exxon’s fourth-quarter financial results versus analysts’ estimates

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Exxon said that its net loss in the fourth quarter printed at £14.68 billion that translates to £3.44 per share. In the same quarter last year, it had recorded £4.16 billion of net income or 97 pence per share.

Adjusted for one-time items, the oil major earned 2.19 pence per share in the recent quarter versus the year-ago figure of 29.99 pence per share. Exxon said that it generated £34.04 billion of revenue in Q4 that represents a 30.7% year over year decline.

According to FactSet, experts had forecast the company to post £34.05 billion of revenue in the fourth quarter. Their estimate for adjusted per-share earnings stood at a lower 0.73 pence. In the prior quarter (Q3), Exxon had posted a 29% decline in its revenue.

At £3.49 billion, capital and exploration expenditures, as per the Irving-based firm, saw a 43.6% annualised decline in Q4. Exxon reported 3.7 million BPD (barrels per day) of oil-equivalent production in the fourth quarter that remained almost unchanged compared to Q3.

CEO Darren Woods reiterated that the Exxon faced unprecedented challenges in 2020 due to the ongoing COVID-19 crisis that has so far infected a little under 27 million people in the United States and caused over 454 thousand deaths.

Exxon announces a new business to commercialise its low-carbon tech portfolio

For fiscal 2021, the American multinational expects to maintain dividend payments as cash flow is likely to cover capital expenditures. In a separate announced, the oil company launched ExxonMobil Low Carbon Solutions – a new business that will help commercialise its low-carbon tech portfolio.

Exxon Mobil Corp performed largely downbeat in the stock market last year with an annual gain of more than 40%. At the time of writing, the oil and gas company is valued at £139 billion and has a price to earnings ratio of 57.77.

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