ExxonMobil will lower its lower its capital expenditure for 2022 by $10 billion as the novel coronavirus (COVID-19) has affected global oil demand in the near-term, the company announced Friday.
The US' largest oil producer said its capital expenditure is now expected to be approximately $23 billion this year, down from the previously announced guidance of $33 billion, according to its financial results statement released on Friday.
"COVID-19 has significantly impacted near-term demand, resulting in oversupplied markets and unprecedented pressure on commodity prices and margins," Chairman and CEO Darren W. Woods said in the statement.
"Economic activity will return, and populations and standards of living will increase, which will in turn drive demand for our products and a recovery of the industry," he added.
ExxonMobil said it had a net loss of $610 million in the first quarter of 2020, as opposed to a net income of $2.35 billion during the same period of 2019.
Total revenue came in at $56.16 billion for the first three months of this year -- down 11.7% from $63.62 billion recorded in the first three months of last year.
The company produced 2.48 million barrels per day (bpd) of oil and natural gas liquids on average during the January-March period of 2020, which is 6.9% more than the 2.32 million bpd of output listed for the same period of 2019.
Despite the rise in production, crude oil prices that fell last month to their lowest levels since 1999 took a toll on the company's earnings and revenue.
By Ovunc Kutlu