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Exxon Mobil reports big 2020 loss, unveils low carbon business

·1-min read
Exxon Mobil reported a hefty loss for 2020 and additional cost-cutting moves

Exxon Mobil closed the books on a terrible 2020 on Tuesday, reporting losses in the fourth-quarter and for the full year in the wake of lower oil prices amid the Covid-19 crisis.

The big US oil company, which has been criticized over the last year for both its financial performance and its response to climate change, suffered a 2020 loss of $22.4 billion, after posting a profit of $14.3 billion in 2019.

The energy giant unveiled new cost-cutting efforts, a new low-carbon business unit and a new board member that it said would position it for the future.

"The past year presented the most challenging market conditions Exxon Mobil has ever experienced," said Chief Executive Darren Woods, adding that the company responded "decisively" in ways that will position it for the long term.

In the fourth quarter, Exxon Mobil suffered a loss of $20.1 billion following huge write-offs. Revenues fell 30.7 percent to $46.5 billion.

The company unveiled plans for additional spending cuts of $3 billion in annual expenses expected by 2023, its latest belt-tightening move amid the industry-wide downturn.

Amid criticism it has not invested in renewable energy, Exxon Mobil said its low carbon solutions business would focus on carbon capture and storage technology as a means to counter the emissions that cause global warming.

The oil giant also nominated to its board former chief executive of Malaysian national oil company Petronas, Tan Sri Wan Zulkiflee Wan Ariffin.

Shares rose 2.0 percent to $45.80 in pre-market trading.

jmb/hs