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Exxon Misses Expectations and Says It Won't Take on More DebtExxon Misses Expectations and Says It Won't Take on More DebtSalzman, Avi.Barron's (Online); New York Exxon Mobil missed analysts' earnings expectation in the second quarter, posting a wider-than-expected loss as Covid-19 lockdowns and global oil oversupply hurt results. Exxon (ticker: XOM) reported on Friday an adjusted loss of 70 cents a share, versus analysts expectation for a 62-cent loss. Its revenue of $32.6 billion also missed expectations for $38.2 billion. Its stock was down 2.3% in premarket trading. Exxon's production fell by about 10%, from 4 million barrels a day in the first quarter to 3.6 million in the second. Exxon said it has made progress in cutting costs and may even exceed its prior expectations. "The progress we've made to date gives us confidence that we will meet or exceed our cost-reduction targets for 2020 and provides a strong foundation for further efficiencies," CEO Darren Woods said in a statement. The company also says it doesn't expect to take on more debt. "We have increased debt to a level we feel is appropriate to provide liquidity, given market uncertainties," Woods said. "Based on current projections, we do not plan to take on any additional debt." Moody's downgraded Exxon's issuer and senior unsecured ratings in April on concerns about its elevated debt levels and negative free cash flow. S&P Global Ratings downgraded its issuer credit rating and unsecured debt rating to AA from AA+ in March . The company added $9.5 billion in debt in April. Exxon said in a slide presentation that maintaining its dividend is a priority. It paid $3.7 billion worth of dividends in the quarter, though it had no cash flow from operating activities in the quarter under traditional accounting calculations. |
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