EghtesadOnline: ExxonMobil may be set for its second consecutive loss in Q2 as the oil price collapse and weak refining margins will hit both the upstream and downstream divisions of the US supermajor.
In a filing to the US Securities and Exchange Commission on Thursday, Exxon gave the market and investors a perspective on the market factors that impacted its Q2 results, Oil Price reported.
“These factors are generally limited to market dynamics, seasonal patterns, and planned activities,” Exxon said.
The oil giant sees the lower oil and natural gas prices decreasing its upstream operating profit by anywhere from $2.5 billion to $3.1 billion.
In the downstream, a change in North American crude logistics differentials and weak refining margins are set to eat between $800 million and $1.2 billion of the operating profit.
Estimates point to Exxon posting a net loss of $2.3 billion for the second quarter.
For the first quarter, Exxon reported a surprise loss on the back of write-downs amid the oil price plunge, posting its first quarterly loss since the 1999 merger of Exxon and Mobil.
Exxon booked a loss of $610 million for the first quarter of 2020, compared to earnings of $2.4 billion for the first quarter of 2019.
In the upstream, Exxon posted a profit of $536 million for Q1 2020, sharply down from $2.8 billion for Q1 2019, while the downstream business booked a loss of $611 million, widened from a loss of $256 million for the same period last year.