Exxon Mobil Corp on Tuesday decided to cut capital spending by 30 percent this year as the coronavirus pandemic saps energy demand and oil prices tumble.
As countries order businesses closed, tell residents to stay home, and limit air travel to combat the pandemic, oil companies have pulled back 2020 spending plans by an average of 22 percent.
On lower demand for fuel spurred by the pandemic and an oil price war, crude prices have plunged nearly 60 percent this year. Exxon Mobil was the last oil majors to move. However, the company’s spending cut was deeper than most of its rivals.
Down $10 billion from the company’s earlier plan and the lowest in four years, it set 2020 capital expenditure at $23 billion. If required, Exxon Chief Executive Darren Woods said spending could drop even further and continue into next year.
No action was taken by the company on its shareholder dividend, while analysts had been closely monitoring it for any reduction. Last year, Exxon Mobil spent $14.8 billion on shareholder payouts.
