ConocoPhillips plans to fully recover by September
ConocoPhillips reported a $ 1 billion loss in the second quarter, with about a quarter of its production shutting down in the second quarter.
The company said it will bring production online and expects to fully restore production by September.
Meanwhile, some other companies also reported poor performance. Eni reported that in the second quarter, a net loss of 4.41 billion euros, and the results of the half-year – 7.34 billion euros. This figure includes an impairment of € 3.5 billion, which is largely a consequence of lower oil price expectations in the future. The Italian oil company also cut capex and, in particular, revised its dividend policy to be pegged to oil prices rather than making fixed payments to shareholders. This means a cut in payments for at least this year.
Some companies have been able to compensate for losses through trading, taking advantage of the volatility of oil prices. But that's not what the majors can count on in the future. Trade will not be able to offset the deteriorating outlook for their core oil and gas business.
It is against this backdrop that companies are nervously tracking long-term demand trends.
Two US oil giants, ExxonMobil and Chevron, will report results on Friday. To date, they have charted a different course than their European counterparts in resisting efforts to switch to low-carbon energy sources.
Exxon is also pursuing a different strategy with regard to its spending priorities. Reuters reports that Exxon will cut staff and capex even further in an effort to maintain its dividend. The company has already had to take on $ 18 billion in debt this year to cover costs and shareholder payments. More credits will be required to continue these payments, but it is not clear if this strategy will last forever. “Exxon has been in the market for so long that it can continue to rely on its balance sheet before it gets threatened,” Jennifer Rowland, an analyst at Edward Jones, told Reuters. : ///
Record ConocoPhillips plans to fully recover by September first appeared TEKNOBLOG .
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