Shares of Exxon Mobil Corp. XOM, +0.18% rose 1.9% in premarket trading Tuesday, after the oil giant reported a fourth-quarter net loss of more than $20 billion, but an adjusted profit that topped expectations. The company swung to a net loss of $20.07 billion, or $4.70 a share, from net income of $5.69 billion, or $1.33 a share, in the year-ago period. Excluding nonrecurring items, such as a $19.3 billion impairment charge, adjusted earnings per share fell to 3 cents from 41 cents, but beat the FactSet consensus of 1 cent. Revenue dropped 30.7% to $46.54 billion, just shy of the FactSet consensus of $46.55 billion. Capital and exploration expenditures declined 43.6% to $4.77 billion. Oil-equivalent production was 3.7 million barrels per day, consistent with the third quarter, as production was reduced by government mandated curtailments. Chief Executive Darren Woods said 2020 “presented the most challenging market conditions ExxonMobil has ever experienced,” given the effects of the COVID-19 pandemic. For 2021, the company expects cash flow will cover capital expenditures and allow the dividend to be maintained. Separately, the company announced the creation of a new business, ExxonMobil Low Carbon Solutions, to commercialize its low-carbon technology portfolio. The stock has tumbled 27.7% over the past 12 months through Monday, while the SPDR Energy Select Sector ETF XLE, +0.71% has declined 25.9% and the S&P 500 SPX, +1.61% has gained 17.0%.
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