• 3 minutes "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 9 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 10 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 8 days Energy Armageddon
  • 17 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 1 hour Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 4 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 4 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 4 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 4 days The Federal Reserve and Money...Aspects which are not widely known
  • 2 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 5 days Goldman Betting on Cryptocurrencies
  • 9 days Сryptocurrency predictions
  • 13 days Putin and Xi Bet on the Global South

Breaking News:

Oil Prices Jump On Major Crude Draw

Exxon Set For Fourth Loss In 2020 After $20-Billion Write-Down

ExxonMobil is on track to book another quarterly loss this year—its fourth consecutive loss in 2020—announcing that it expects to book a massive up to $20-billion write-down for Q4, the U.S. oil and gas supermajor signaled in an SEC filing on Wednesday.  

Impairments of between $18 billion and $20 billion will weigh on the fourth-quarter earnings in Exxon’s upstream division, the company said, narrowing the previously reported $17 billion-$20 billion range announced at end-November in its first major asset write-downs in its modern history.

The Q4 loss would be Exxon’s fourth straight quarterly loss in 2020 in which oil corporations struggled in both the upstream and downstream due to the crash in oil prices and the collapse of oil demand in the pandemic.

Higher liquids and gas prices in the fourth quarter are likely to boost Exxon’s upstream earnings compared to Q3 by between $200 million and $1 billion, compared to a loss of $400 million in the upstream for Q3, the filing showed. However, the negative impact of the write-down will overshadow the positive boost to earnings from higher oil and gas prices.

The downstream division is set for another loss for the fourth quarter, while the chemicals division is on track to boost profits compared to Q3 due to a $200 million-$400 million positive impact from improved chemicals margins, Exxon’s filing shows. For Q3, Exxon booked a $700-million profit in its chemicals division.

Exxon is scheduled to report fourth-quarter financials on February 2, 2021.

Refinitiv IBES data, cited by Reuters, points to the supermajor booking an adjusted loss of $3.47 billion, or $0.61 per share loss, for Q4, versus a profit of $5.69 billion, or $1.33 per share, for the same period of 2019.  

Exxon is wrapping up a challenging year. Its stock is down by 41 percent in 2020, and a growing number of shareholders and investors are calling for the supermajor to change with the times and invest more in clean energy.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment
  • George Doolittle on December 31 2020 said:
    Seems to me downstream is the cash machine as prices at the pump have hardly collapsed in the least but not so oil prices which at one time were at negative 40 us dollars a barrel.

    Anyhow "just minting money in West Texas" no doubt...same as Chevron which...well imagine that also announced a massive write down this Year.

    See what the New Year brings. Great lesson in why to do avoid MLPs tho

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News