Mobil Corp on Tuesday posted a historic annual loss after the COVID-19 pandemic hammered energy prices and reduced the value of the company’s shale gas properties by more than $20 billion.
Exxon last year slashed spending on new projects by nearly a third, outlined plans to cut up to 15% of its workforce while adding $21 billion to its debt to cover the losses and restructuring.
The changes come amid “the most challenging market conditions Exxon has ever experienced,” said Chief Executive Darren Woods, and over time will cut costs by $6 billion a year compared to 2019.
The company reported a net annual loss of $22.4 billion for 2020, on the write-down and losses in oil production and refining, compared with a full-year profit of $14.34 billion in 2019.
Exxon declined to comment if it has ever had an annual loss, but the company churned out profits since Exxon merged with Mobil in 1999 and through the 1980s oil bust.
Source: Reuters
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