NYSE$XOM

Exxon-Mobil · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

ExxonMobil's financial results were significantly impacted by the global pandemic and oversupply conditions, leading to lower prices, margins, and sales volumes.

ExxonMobil reported a second quarter 2020 loss of $1.1 billion, or $0.26 per share assuming dilution, driven by the global pandemic and oversupply conditions. The results included a positive noncash inventory valuation adjustment of $1.9 billion. Capital and exploration expenditures were $5.3 billion. Oil-equivalent production was 3.6 million barrels per day, down 7 percent from the second quarter of 2019.

  • Global oversupply and COVID-related demand impacts drove second quarter loss of $1.1 billion.
  • Company is on track to meet or exceed 2020 capital and cash operating spend reduction targets.
  • ExxonMobil supported COVID-19 response by reconfiguring operations to increase production of hand sanitizer and raw materials for protective equipment.
  • Oil-equivalent production was 3.6 million barrels per day, down 7 percent from the second quarter of 2019.

Headline financials

Total Revenue

$32.6B

Previous: $67.5B-51.7%
EPS (adj)

-$0.70

Previous: $0.73-195.9%
Upstream Production

3.6M

Previous: 3.9M-6.9%
Capital Expenditures

-$10.4B

Previous: -$11.4B+8.9%
Free Cash Flow

-$11.4B

Previous: -$8.24B-38.8%
Net Income

-$1.08B

Previous: $3.13B-134.5%
Operating Income

$26.5B

Previous: $64.3B-58.8%
Gross Profit

$30B

Previous: $67.5B-55.6%
Cash & Equivalents

$12.6B

Previous: $4.21B+198.5%
Total Assets

$361B

Previous: $361B+0.2%

Revenue & EPS history

ExxonMobil · Revenue · Quarterly

$32.6B

Q2 2020-51.7%vs Q2 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

ExxonMobil has increased debt to a level they feel is appropriate to provide liquidity, given market uncertainties. Based on current projections, they do not plan to take on any additional debt and have identified significant potential for additional reductions.

Tailwinds

  • The company is on track to meet or exceed its cost-reduction targets for 2020.
  • ExxonMobil is continuing work to improve efficiency by leveraging recent reorganizations.
  • The company will continue to acquire shares to offset dilution in conjunction with its benefit plans and programs.
  • The company demonstrated production capacity of 120,000 gross barrels of oil per day at the Liza Phase 1 development offshore Guyana.
  • ExxonMobil made significant progress on its previously announced capital and cash operating spend reductions.

Headwinds

  • The global pandemic and oversupply conditions significantly impacted the second quarter financial results with lower prices, margins, and sales volumes.
  • Industry fuels margins were considerably lower than in the first quarter, reflecting the impacts of COVID‑19 on demand for gasoline and jet fuel.
  • Chemical sales volumes were lower than first quarter driven by the impacts of COVID-19 on global demand.
  • Operations were impacted by logistical restrictions resulting from COVID-19.
  • Average refinery utilization was down significantly from first quarter on lower demand, as the company spared about 30 percent of its refining capacity.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.3%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-0.1%

Avg return

30 days after

48%

35 / 73 earnings

Positive

+6.1%

Q4 2021

Best reaction

-10.5%

Q4 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.1%-3.9%-2.3%
Q4 2025+0.7%+5.0%+8.5%
Q3 2025-0.4%-0.9%+1.1%
Q2 2025-2.1%-2.6%+2.1%
Q1 2025+0.3%-1.1%-3.3%
Q4 2024-2.5%+0.3%+1.6%
Q3 2024+1.6%+3.6%+1.0%
Q2 2024-1.9%-1.1%+0.8%
Q1 2024-1.4%-4.4%-6.5%
Q4 2023-0.8%-0.2%+3.4%
Q3 2023-1.6%-1.8%-2.8%
Q2 2023+1.7%-0.1%+2.7%
Q1 2023-1.8%-7.6%-10.2%
Q4 2022+1.0%-1.4%-1.9%
Q3 2022+3.0%+1.9%+5.3%
Q2 2022+2.0%-1.7%+5.6%
Q1 2022-0.9%+5.2%+11.9%
Q4 2021+6.1%+7.2%+6.7%
Q3 2021+2.1%-0.6%-4.8%
Q2 2021-2.3%-3.5%-5.4%
Q1 2021-0.2%+3.4%-1.0%
Q4 2020+5.6%+11.2%+30.7%
Q3 2020+3.1%+0.8%+21.9%
Q2 2020+0.9%+4.7%-2.8%
Q1 2020-3.4%-5.3%-2.2%
Q4 2019-6.3%-3.2%-20.6%
Q3 2019+6.1%+5.8%+0.8%
Q2 2019-3.0%-2.7%-5.5%
Q1 2019-2.7%-4.3%-9.9%
Q4 2018+2.1%+2.7%+9.2%
Q3 2018+1.2%+2.9%-1.5%
Q2 2018-3.0%-4.6%-5.5%
Q1 2018-3.8%-5.0%-2.7%
Q4 2017-10.5%-13.6%-15.2%
Q3 2017+0.1%+0.5%-2.5%
Q2 2017-1.0%-0.3%-5.1%
Q1 2017+1.0%+1.8%+0.4%
Q4 2016-2.3%-1.6%-1.8%
Q3 2016-4.1%-4.0%+0.2%
Q2 2016-4.8%-3.0%-3.2%
Q1 2016+1.2%
Q4 2015+2.9%
Q3 2015+3.7%
Q2 2015-6.0%
Q1 2015+1.1%
Q4 2014+5.5%
Q3 2014+0.9%
Q2 2014-4.3%
Q1 2014-0.4%
Q4 2013-3.1%
Q3 2013+1.1%
Q2 2013-1.9%
Q1 2013-1.6%
Q4 2012-0.9%
Q3 2012-1.0%
Q2 2012+2.6%
Q1 2012-0.9%
Q4 2011+0.2%
Q3 2011+1.5%
Q2 2011-3.7%
Q1 2011+0.2%
Q4 2010-0.5%
Q3 2010+2.3%
Q2 2010-0.0%
Q1 2009-3.7%
Q1 2010+0.8%
Q4 2009+0.4%
Q4 2007+0.4%
Q3 2009+1.8%
Q3 2008+1.8%
Q2 2009-1.2%
Q2 2008-1.2%
Q4 2008-1.2%

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