Home | Goldstreet Business
Monday, January 25, 2021
  • Home
  • General News
    • Extractives
    • Auto
  • Business
    • Banking and Finance
    • AgriBusiness
    • Insurance
    • Mining
    • Oil and Gas
    • Real Estate/Housing
  • News
    • Top Stories
    • Agriculture
    • Maritime/Aviation
    • Energy
    • Education
    • Construction
  • Technology
    • ICT
    • Telecom
  • World
    • Africa
    • International
  • Editorial/Features
  • GSB Data Services
No Result
View All Result
  • Home
  • General News
    • Extractives
    • Auto
  • Business
    • Banking and Finance
    • AgriBusiness
    • Insurance
    • Mining
    • Oil and Gas
    • Real Estate/Housing
  • News
    • Top Stories
    • Agriculture
    • Maritime/Aviation
    • Energy
    • Education
    • Construction
  • Technology
    • ICT
    • Telecom
  • World
    • Africa
    • International
  • Editorial/Features
  • GSB Data Services
No Result
View All Result
Gold Business Logo
No Result
View All Result
Home Business Banking and Finance

ExxonMobil to write off up to $20 billion of assets in its biggest impairment ever

December 1, 2020
in Banking and Finance, Economy, Energy, Oil and Gas
0
ExxonMobil to write off up to $20 billion of assets in its biggest impairment ever

FILE PHOTO: An Exxon sign is seen at a gas station in the Chicago suburb of Norridge, Illinois, U.S., October 27, 2016. REUTERS/Jim Young

Share on FacebookShare on Twitter

Oil major ExxonMobil will make an impairment charge of $17 billion to $20 billion in the last quarter of the year after removing certain dry gas assets from its development plan and reduce spending plans for the next year.

ExxonMobil said on Monday it has completed a review of its forward business plans.

RELATED POSTS

Debt management taking centre stage

Speedy implementation of Ghana CARES program critical – Kwame Pianim

Under the plan, ExxonMobil said it would prioritize near-term capital spending on advantaged assets with the highest potential future value, including developments in Guyana and the U.S. Permian Basin, targeted exploration in Brazil and Chemicals projects.

Darren Woods, chairman and chief executive officer for Exxon Mobil Corporation, said: “Continued emphasis on high-grading the asset base – through exploration, divestment and prioritization of advantaged development opportunities – will improve earnings power and cash generation, and rebuild balance sheet capacity to manage future commodity price cycles while working to maintain a reliable dividend”.

ExxonMobil has lined up several priorities and actions as part of its annual business plan.

These include leveraging the significant cost savings realized in 2020 that are on track to exceed announced reductions of $10 billion or 30 per cent of capital spending and 15 per cent of cash operating expenses.

Key to ongoing expense management are business line reorganizations and efficiencies that include a global workforce reduction of 15 per cent by year-end 2021, ExxonMobil explained.

The plan also includes continued pacing of investments. Namely, the company expects $16 billion to $19 billion in capital and exploration expenditures in 2021 and $20 billion to $25 billion annually through 2025.

ExxonMobil noted that the next priority is reserving the long-term value of the company’s investment portfolio by offsetting costs associated with project delays. The company plans to double earnings by 2027.

Up to $20B impairments for ExxonMobil

Another action ExxonMobil is planning to take involves the removal of less strategic assets from its development plan as a result of the growing strength of its portfolio.

Assets removed include certain dry gas resources in the Appalachian and Rocky Mountains, Oklahoma, Texas, Louisiana and Arkansas in the United States, and in western Canada and Argentina.

The decision will result in a non-cash, after-tax fourth-quarter impairment charge of approximately $17 billion to $20 billion.

According to Reuters, this is ExxonMobil’s biggest impairment ever.

Finally, the plan includes an increased focus on monetization of less strategic assets to grow the portfolio of potential divestments, including certain North American dry gas assets, contingent on buyer valuations.

Woods said the business environment in the fourth quarter is showing signs of improvement despite the resurgence in COVID-19 cases and accompanying economic restrictions.

“Prices and margins for many of our businesses have improved from the third quarter and when coupled with continuing efforts to reduce spending and capture additional efficiencies, quarter-to-date cash flow has improved versus our plan assumptions”, Woods said.

60

SHARES
facebook Share on Facebook
Twitter Tweet
Follow Follow us
custom Share
custom Share
custom Share
custom Share
custom Share
Source: offshore-energy
ShareTweetShare

Related Posts

Debt management taking centre stage

Debt management taking centre stage

January 25, 2021
Speedy implementation of Ghana CARES program critical – Kwame Pianim

Speedy implementation of Ghana CARES program critical – Kwame Pianim

January 25, 2021
Public sector account officers to benefit from IPSAS certification programme

Public sector account officers to benefit from IPSAS certification programme

January 25, 2021
New oilfield development in Ghana stalls

New oilfield development in Ghana stalls

January 25, 2021
Enabling Ghana’s economy to smack its lips

Enabling Ghana’s economy to smack its lips

January 25, 2021
Next Post
Investing in 1D1F – How B5 Plus is positioning Ghana as a net exporter of iron and steel products

Asantehene commends SSNIT Board, Management

14 Ocean Panel nations vow to transform global ocean economy

14 Ocean Panel nations vow to transform global ocean economy

Discussion about this post

Archives

<
January 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
▼
>
MonTueWedThuFriSatSun
    123
45678910
11121314151617
18192021222324
25262728293031
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       
 123456
78910111213
14151617181920
21222324252627
282930    
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
1234567
891011121314
15161718192021
22232425262728
2930     
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
  12345
6789101112
13141516171819
20212223242526
27282930   
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
     12
3456789
10111213141516
17181920212223
242526272829 
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
     12
3456789
10111213141516
17181920212223
24252627282930
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
1234567
891011121314
15161718192021
22232425262728
2930     
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
    123
45678910
11121314151617
18192021222324
25262728   
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
   1234
567891011
12131415161718
19202122232425
2627282930  
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
     12
3456789
10111213141516
17181920212223
24252627282930
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       

RECOMMENDED

Debt management taking centre stage

Debt management taking centre stage

January 25, 2021
Speedy implementation of Ghana CARES program critical – Kwame Pianim

Speedy implementation of Ghana CARES program critical – Kwame Pianim

January 25, 2021

MOST VIEWED

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Energy
  • Health
  • Auto
  • International
  • Subscription Form
  • Staff Webmail
  • About Us
  • Contact Us
Call us: +233 24 432 0902 | info@goldstreetbusiness.com

© Copyright © 2020 goldstreetbusiness.com. All Rights Reserved.

No Result
View All Result
  • Homepages
    • Homepage Layout 1
    • Homepage Layout 2
  • World
  • Business
  • Technology
  • Health

© Copyright © 2020 goldstreetbusiness.com. All Rights Reserved.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.