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Exxon is confronting one of its biggest crises since Saudi Arabia began nationalizing its oilfields in the 1970s. If the company takes the full $30 billion impairment, it will be the industry\u2019s worst in more than a decade, according to Bloomberg data.<\/p>\n
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The company lost $680 million, or 15 cents a share, during the third quarter, compared with the 25-cent per-share loss forecast in a Bloomberg survey of analysts. The shares fell 1.6% to $32.45 at 12:09 p.m. in New York and are down more than 50% for the year.<\/p>\n
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That was in stark contrast to Chevron Corp., which disclosed a surprise profit<\/a> as the company\u2019s oil-production and refining divisions outperformed analysts\u2019 expectations. Chevron\u2019s shares rose 1.1%. European supermajors Total SE, Royal Dutch Shell Plc and BP Plc also turned in better-than-expected third-quarter performances.<\/p>\n <\/p>\n Blindsided by the economic fallout from the Covid-19 pandemic, Exxon Chief Executive Officer Darren Woods abruptly ditched an ambitious rebuilding effort and imposed widespread job cuts that are unprecedented in Exxon\u2019s modern history. His top priority has been preserving a dividend<\/a> that pays shareholders $3.7 billion every three months.<\/p>\n <\/p>\n The firings and layoffs announced Thursday will affect 14,000 workers<\/a> in the U.S. and abroad. Pandemic-induced lockdowns have crushed demand for oil, natural gas and chemicals, sending Exxon\u2019s finances into a tailspin. Prior to 2020, the company hadn\u2019t posted a quarterly loss in at least three decades.<\/p>\n <\/p>\n Woods\u2019s turnaround effort took another hit Friday when the company said an internal assessment is under way to determine the future of its North American gas assets. Much of those fields were added to Exxon\u2019s portfolio a decade ago with the $35 billion takeover of XTO Energy Inc., when American gas prices were almost twice the current level.<\/p>\n <\/p>\n Exxon expects to know by the end of the year whether it\u2019ll devote any of its drilling budget to North American gas assets, given that other projects may deliver higher returns. The company also may put those fields up for sale, Senior Vice President Andrew Swiger said during a conference call with analysts.<\/p>\n <\/p>\n The company may incur additional impairments on assets in Canada, where operations include the massive Kearl oil-sands complex in Alberta, according to a statmement from Exxon\u2019s Imperial Oil Ltd. Although third-quarter results outperformed expectations, the company is still struggling to generate enough cash to fund dividend payments and capital projects.<\/p>\n <\/p>\n