Exxon clamps down on spending, 4Q revenue nearly flat

·2 min read

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 totalled $21.4 billion, which included $4.8 billion in fourth-quarter capital and exploration expenditures.

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 earned 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.

Exxon's shares rose 71 cents, or 1.6%, to close Tuesday at $45.63.

Oil-equivalent production totalled 3.7 million barrels per day, consistent with the third quarter. Production was reduced by government mandated curtailments. Excluding entitlement effects, divestments, and government mandates, liquids production increased 5%, while natural gas volumes increased 2%.

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.

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This story has been updated to correct that after excluding an impairment charge and other items, Exxon earned 3 cents a share, not lost 3 cents a share.

Michelle Chapman, The Associated Press