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% 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.
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.