US oil giants Exxon Mobil and Chevron today suffered losses in the latest quarter as the weakened economic outlook due to the coronavirus pandemic pressures the industry to double down on cost cuts.
Exxon Mobil today reported a loss of $1.1 billion in the second quarter, and said it trimmed capital spending during the period and "identified significant potential for additional reductions."
Meanwhile, Chevron lost $8.3 billion in the same period, as it slashed the value of assets on expectations that commodity prices will stay down longer.
The figures incorporated a downgrade to the value of assets in Venezuela.
Weak economic conditions could weigh on Chevron's results "into the third quarter," warned Chief Executive Mike Wirth.
"The economic impact of the response to Covid-19 significantly reduced demand for our products and lowered commodity prices," Wirth said.
"Given the uncertainties associated with economic recovery, and ample oil and gas supplies, we made a downward revision to our commodity price outlook which resulted in asset impairments and other charges," he added.
The losses come on the heels of similar reports this week from Royal Dutch Shell, Total and Eni and underscore the depressed state of affairs globally for a sector tied closely to the real economy.
During the quarter, Exxon Mobil's revenues fell by more than 50% to $32.6 billion, while Chevron's revenues fell by almost two-thirds to $13.5 billion.