HIT BY PANDEMIC, EXXON, BP POST HUGE 2020 LOSSES

DALLAS: Oil giants Exxon and BP reported staggering losses for 2020 on Tuesday as the pandemic crushed energy demand and undercut oil prices.

Exxon Mobil Corp. reported the largest losses in its history— nearly $20.1 billion for the fourth quarter, including more than $19 billion to write down the value of company assets. For the full year, it lost $22.4 billion.

BP PLC posted a profit of $825 million in the fourth quarter but still lost $18.1 billion in 2020. The results came after Chevron reported last week that it lost $5.5 billion last year.

Signs point to better results for the oil giants this year. Crude prices are up roughly 50% in the past three months, including a gain of more than 10% since Jan. 1, as major producers led by Saudi Arabia have cut output.

“Energy consumption collapsed as economies shut down, oil prices hit their lowest point in history, and refining margins fell well below their 10-year lows,” said Exxon CEO Darren Woods.

London-based BP last year announced it will seek to become a net zero producer of carbon emissions by 2050. However, the company is still bringing new oil and gas projects into operation.

BP is also cutting costs. “We began reinventing BP, with nearly 10,000 people leaving the company,” chief executive Bernard Looney said in a statement.

“We strengthened our finances—taking out costs and closing major divestments.” Exxon shares rose 71 cents, or 1.6%, to close Tuesday at $45.63.