Not so long ago, Exxon Mobil (XOM) was the largest company in the U.S. by market cap.
Now, the notorious oil and gas company is shell of its former self. And the future isn’t looking much more friendly.
For evidence, don’t look further than the Exxon’s latest earnings report, where the company revealed a $20 billion loss as the pandemic crushed energy prices and the expected switch to more renewable fuels led to a huge write-down of oil reserves.
Exxon last year slashed spending on new projects by nearly a third, outlined plans to cut up to 15% of its workforce while adding $21 billion to its debt to cover the losses and restructuring.
The changes come amid “the most challenging market conditions Exxon has ever experienced,” said Chief Executive Darren Woods, and over time will cut costs by $6 billion a year compared to 2019.
The company reported a net annual loss of $22.4 billion for 2020, on the writedown and losses in oil production and refining, compared with a full-year profit of $14.34 billion in 2019.
Exxon declined to comment if it has ever had an annual loss, but the company churned out profits since Exxon merged with Mobil in 1999 and through the 1980s oil bust.
WIth this global movement towards clean energy, are the days of consistent profits a thing of the past?