- Company responds to market conditions to preserve long-term
value and reduce spending
- Production of key materials to support COVID-19 response
increased
- Efforts continue to advance lower-emissions technologies,
including carbon capture
ExxonMobil is managing unprecedented market challenges from the
COVID-19 pandemic while preserving long-term shareholder value,
chairman and chief executive officer Darren Woods told shareholders
today during the company’s annual meeting.
“Despite the current volatility and near-term uncertainty, the
long-term fundamentals that drive our business remain strong and
unchanged,” Woods said during the meeting, which was held virtually
to reduce health risks from the pandemic. “Our objective is to
strengthen the structure and earnings power of our business through
industry-advantaged projects to provide a solid foundation for
generating cash, reliably growing the dividend and maintaining a
strong balance sheet.”
In response to market conditions, ExxonMobil announced in April
that it would be reducing its 2020 capital spending by 30 percent,
to approximately $23 billion, and lowering its cash operating
expenses by 15 percent. Woods said the company has identified
opportunities to reduce capital expenditures without compromising
project advantages or returns.
“We’ve adjusted our business plans in response to market
conditions, and are working hard to ensure we maintain the value of
our portfolio of industry-leading opportunities,” he said. “While
these are uncertain times, some things remain unchanged – including
the fundamentals that underpin our business, our long-term plan,
and commitment to grow value for shareholders.”
Woods thanked the company’s workforce for quickly adapting and
adjusting manufacturing operations to deliver much-needed raw
materials to assist medical professionals and first responders
fighting COVID-19 on the front lines.
“There is no question that times like these demonstrate the
vital role our company and our industry play in modern life,” said
Woods. “It has been inspiring to see the actions of our people who
are stepping up to help fight this virus and its effects, all while
continuing critical operations.”
ExxonMobil has increased production of specialty polypropylene –
used to make medical gowns and masks – and isopropyl alcohol, the
key ingredient in medical-grade hand sanitizer and other
disinfectants.
Operations at its Baton Rouge, LA, site were reconfigured to
produce, blend, package, and distribute medical-grade hand
sanitizer for donation to health care providers and first
responders across the United States. And it supported development
of third-party production of safety equipment that can be
sterilized and worn multiple times to help alleviate shortages.
Woods provided an overview of ExxonMobil’s performance in 2019,
when the company delivered earnings of more than $14 billion,
achieved first oil production in Guyana, increased Permian
production volumes nearly 80 percent, and began a multi-year
exploration program offshore Brazil. In the Downstream, ExxonMobil
brought three major refining projects online in Antwerp, Rotterdam
and Beaumont. Its chemical operations broke ground on four major
projects across Baytown, Baton Rouge and Corpus Christi.
He also outlined ExxonMobil’s continued efforts to address
society’s dual challenge of providing affordable energy necessary
for economic growth while reducing emissions. The company is
investing in new technologies that could provide more affordable,
lower-carbon energy and has focused on three sectors – commercial
transportation, power generation and industrial processes – which
together account for about 80 percent of global CO2 emissions.
In commercial transportation, ExxonMobil is working to develop
advanced biofuels from algae and cellulosic biomass. Efforts to
reduce emissions in power generation and industrial involve
reducing the cost of carbon capture and storage and capturing CO2
directly from ambient air.
Since 2000, ExxonMobil has invested nearly $10 billion in
projects to research, develop and deploy lower-emission energy
solutions. The company also continues to expand collaborative
efforts with more than 80 universities, five energy centers and
multiple private sector partners around the world to explore
next-generation energy technologies.
During the meeting, shareholders re-elected all of the directors
serving on ExxonMobil’s board, supported the company’s executive
compensation program, ratified PricewaterhouseCoopers LLP as
independent auditors and supported board recommendations on six
shareholder-led proposals. The proxy voting results will be made
available on the company’s website.
About ExxonMobil
ExxonMobil, one of the largest publicly traded international
energy companies, uses technology and innovation to help meet the
world’s growing energy needs. ExxonMobil holds an industry-leading
inventory of resources, is one of the largest refiners and
marketers of petroleum products, and its chemical company is one of
the largest in the world. To learn more, visit exxonmobil.com and
the Energy Factor.
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Cautionary Statement:
Outlooks, projections, goals, discussions of potential,
descriptions of business plans, objectives and resource potential,
market expectations and other statements of future events or
conditions in this release are forward-looking statements. Actual
future results, including financial and operating performance;
capital and operating expense reductions; project plans, timing,
and outcomes; future business results including cash flows,
dividends, and shareholder returns; accounting effects resulting
from market developments and ExxonMobil’s responsive actions; and
impacts of the COVID-19 pandemic and government responses on
ExxonMobil’s business, and results, could differ significantly
depending on a number of factors including supply and demand for
oil, gas, and petroleum products and other market factors affecting
oil, gas, and petroleum product prices; the outcome of government
policies and actions, including actions taken to address COVID-19
and to maintain the functioning of national and global economies
and markets; the severity, length, frequency of outbreaks, and
ultimate impact of COVID-19 on people and economies; the impact of
company actions to protect the health and safety of employees,
vendors, customers, and communities; actions of competitors and
commercial counterparties; the ability to access short- and
long-term debt markets on a timely and affordable basis; the
actions of consumers; the timely completion of development
projects; other legal and political factors including obtaining
necessary permits and changes in tax or environmental laws;
unexpected operating events or technical difficulties; the outcome
of commercial negotiations including negotiations with governments,
private partners, and vendors; and other factors discussed under
Item 1A Risk Factors in ExxonMobil’s most recent annual report on
Form 10-K and set forth under the heading “Factors Affecting Future
Results” on the Investors page of our website at exxonmobil.com.
All forward-looking statements are based on management’s knowledge
and reasonable expectations and we assume no duty to update these
statements as of any future date.
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