Shares of Exxon Mobil Corp. (XOM) fell 1.0% in premarket trading Friday, after the oil giant reported a wider-than-expected second-quarter loss and revenue that fell more than forecast, as the global oversupply of oil and the COVID-19 pandemic drove down results. The company swung to a net loss of $1.08 billion, or 26 cents a share, from net income of $3.13 billion, or 73 cents a share, in the year-ago period. Excluding non-recurring items, such as a gain from inventory valuation adjustments resulting from rising commodity prices, the adjusted loss per share was 70 cents, compared with the FactSet loss consensus of 61 cents. Total revenue dropped 52.8% to $32.61 billion, below the FactSet consensus of $38.16 billion. Oil-equivalent production fell 7% to 3.6 million barrels per day, which was above the FactSet consensus of 3.4 million barrels per day, as liquids production fell 3% and natural gas decreased 12%. "The global pandemic and oversupply conditions significantly impacted our second quarter financial results with lower prices, margins, and sales volumes," said Chief Executive Darren Woods. The company said it doesn't plan to take on more debt, as it believes it has already increased debt to a level that is "appropriate" given current market uncertainties. The stock has tumbled 40.0% year to date through Thursday, while the SPDR Energy Select Sector ETF (XLE) has shed 39.7% and the Dow Jones Industrial Average has lost 7.8%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
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