ExxonMobil to significantly reduce capital, operating expenses

Oil&Gas Materials 17 March 2020 17:01 (UTC +04:00)
ExxonMobil to significantly reduce capital, operating expenses

BAKU, Azerbaijan, March 17

By Leman Zeynalova – Trend:

US-based ExxonMobil company will significantly reduce capital and operating expenses in the near term, said Darren Woods, chairman and chief executive officer of Exxon Mobil Corporation, Trend reports citing the company.

“Based on this unprecedented environment, we are evaluating all appropriate steps to significantly reduce capital and operating expenses in the near term. We will outline plans when they are finalized,” he explained.

Woods said that ExxonMobil has faced numerous market downturns throughout its long history and has experience operating in a sustained low-price environment. “We remain focused on being a safe, low-cost operator and creating long-term value for shareholders,” said Woods.

“The company is closely monitoring the COVID-19 pandemic and has adjusted work arrangements to ensure a healthy work environment and support communities where we operate.”

Woods stressed the company will maintain its ongoing commitment to safety and environmental performance.

“We are confident that we will manage through these challenging times by taking deliberate action to keep our people safe, our environment protected and our company strong,” said Woods.

S&P Global has cut the credit rating of oil giant ExxonMobil from AA+ to AA. The credit rating agency also maintained its negative outlook on Exxon's credit, with it warning of another downgrade if the company doesn't address its financial issues in the next 12-24 months.

S&P downgraded Exxon's credit because of its higher leverage metrics, weaker 2020 outlook, and large deficit between cash flow and outflows to fund its dividend and capital spending program.

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.


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