ExxonMobil reports fourth-quarter 2020 loss of $20 billion

Feb. 3, 2021
ExxonMobil Corp. recorded an estimated fourth-quarter 2020 loss of $20.1 billion. The loss included unfavorable identified items of $20.2 billion, primarily non-cash impairments; earnings excluding identified items were $110 million.

ExxonMobil Corp. recorded an estimated fourth-quarter 2020 loss of $20.1 billion. The loss included unfavorable identified items of $20.2 billion, primarily non-cash impairments; earnings excluding identified items were $110 million.

Capital and exploration expenditures in the quarter were $4.8 billion, bringing full-year spending to $21.4 billion, $9.8 billion lower than the prior year. Oil-equivalent production in the fourth quarter was 3.7 million b/d, consistent with third-quarter 2020. Excluding entitlement effects, divestments, and government mandates, liquids production increased 5%, while natural gas volumes increased 2%.

Average realizations for crude oil were in line with the third quarter. Natural gas realizations rose by 39% in the quarter, reflecting market supply disruptions and seasonal demand.

For the downstream sector, industry fuels margins improved slightly from the third quarter but remained near historic lows driven by market oversupply and high product inventory levels. Lubricants delivered strong fourth quarter and full-year performance underpinned by improved margins and cost control, despite pandemic-related challenges.

For the chemical segment, fourth quarter earnings of $691 million represent the best quarterly result since 2018, underpinned by strong safety and operational performance, and advantages from integration with refining, the company said. Chemical sales volumes were even with the third quarter, while industry margins strengthened on continued strong packaging demand, automotive and durables market recovery and industry supply disruptions. The company also achieved record full-year polyethylene sales driven by strong performance from recent investments and growing demand for the company's performance products.