In a SEC filing Thursday, Exxon gave the market and investors a perspective on the market factors that affected its second quarter results.
“These factors are generally limited to market dynamics, seasonal trends and planned activities,” said Exxon.
The oil giant sees falling oil and natural gas prices cut its upstream operating profit from $ 2.5 billion to $ 3.1 billion.
Downstream, a change in logistic differentials for crude oil in North America and low refining margins are expected to absorb between $ 800 million and $ 1.2 billion in operating profit.
Refinitiv IBES estimates reported by Reuters indicate that Exxon recorded a net loss of $ 2.3 billion for the second quarter.
For the first quarter, Exxon announced a surprise loss on the back of impairments amid falling oil prices, posting its first quarterly loss since the merger of Exxon and Mobil in 1999.
Exxon recorded a loss of $ 610 million for the first quarter of 2020, compared to a profit of $ 2.4 billion for the first quarter of 2019.
Upstream, Exxon posted a profit of $ 536 million in Q1 2020, down sharply from $ 2.876 billion in Q1 2019, while downstream activity posted a loss of $ 611 million, widened from a loss of $ 256 million for the same period last year.
While Exxon warns the market that further loss will occur due to weak demand for oil and refining margins and falling oil prices, Shell and BP have already said they will take depreciation charges after tax of up to $ 22 billion and up to $ 17.5 billion, respectively, after downgrading their pricing assumptions and the value of their oil and gas assets.
By Charles Kennedy for Oilprice.com
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