Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusiness

Exxon signals second quarterly loss in a row on production, refining hit

Exxon faces a loss for the quarter of $2.3 billion, or 52 cents per share, according to estimates from Refinitiv IBES. It marks the second this year after a $610 million first-quarter deficit. Results are due out July 31.

July 02, 2020 / 06:51 PM IST

Exxon Mobil Corp's oil and gas producing and refining businesses will report operating losses in the second quarter, it said in a regulatory filing on Thursday, setting the stage for the company to post another quarterly loss this year.

Oil prices are down 35 percent since January as the COVID-19 pandemic slashed demand and a global glut forced widespread production cuts. Rivals Royal Dutch Shell and BP Plc have disclosed massive spending cuts and writedowns due to the price drop.

Exxon faces a loss for the quarter of $2.3 billion, or 52 cents per share, according to estimates from Refinitiv IBES. It marks the second this year after a $610 million first-quarter deficit. Results are due out July 31.

The company's oil and gas operations will swing to a loss compared with the first quarter because of lower prices that reduce operating profit between $2.5 billion and $3.1 billion, the company said in a filing designed to give investors a snapshot of its operations.

Its refining unit will suffer losses estimated to be between $800 million and $1.l billion, larger than its first quarter loss, it said.

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more
Show

The second quarter will be "dismal" due to a low point for oil and gas prices, refining margins and production, said Jennifer Rowland, analyst with Edward Jones.

Reuters
first published: Jul 2, 2020 06:51 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347