Exxon takes $2.9B writedown as coronavirus ravages oil market

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Exxon Mobil Corp. took a $2.9 billion writedown in the first quarter, resulting in a $610 million loss.

The Irving, Texas-based integrated oil company lost 14 cents a share as revenue fell 12 percent from a year ago to $56.16 billion. Wall Street analysts surveyed by Refintiv were expecting flat earnings on revenue of $51.85 billion.

CHEVRON SLASHES COSTS TO PROTECT DIVIDEND FROM CORONAVIRUS

Exxon last month announced it would slash capital expenditures by 30 percent and reduce operating expenses by 15 percent in order to protect its 87-cent dividend. Capital expenditures are expected to total $23 billion for the year, down from $33 billion, Exxon said.

“COVID-19 has significantly impacted near-term demand, resulting in oversupplied markets and unprecedented pressure on commodity prices and margins,” Exxon Mobil CEO Darren Woods said in a statement.

Exxon's oil-equivalent production was 4 million barrels per day, up 2 percent from a year ago, as liquids increased by 7 percent, partially offset by a 5 percent drop in gas.

“Our company remains strong, and we will manage through the current market downturn as we have for decades,” Woods said.

Rival Chevron on Friday promised its dividend is safe as well. British-Dutch oil behemoth Royal Dutch Shell slashed its dividend by 66 percent to 16 cents per share. The cut was the first by Shell since World War II.

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Exxon shares fell 33 percent this year through Thursday, lagging the S&P 500's 9.85 percent drop.