A report by the US Energy Information Administration (EIA) showed that in the first quarter of 2020, 102 global energy companies wrote down a total of USD92 billion worth of assets, the highest number since the fourth quarter of 2015.
Firms referenced in the report include BP plc, Chevron Corp., ConocoPhillips Corp., Eni S.p.A., ExxonMobil Corp., Royal Dutch Shell plc, and Total S.A.
The long-term borrowing and debt rose by USD55 billion in the period, which is the highest since 2015.
Less than 50% of the energy firms posted positive free cash flow in the first three months of this year, compared to more than 60% in the previous quarter. Operation cash in the period dropped by 25% year-on-year while capital expenditure was 9% lower than in the same period a year ago.
Crude prices in the first quarter slumped by 20% year-on-year while the natural gas prices plummeted by 35%.
In the period, the companies inflated their combined liquids production by 3.7% but they also let down by 0.1% of their natural gas production year-on-year.
