ExxonMobil Warns of Big Cuts to Capex

ExxonMobil plans to "significantly" cut spending in response to the Covid-19 pandemic's impact on markets and a recent sharp decline in oil prices, the US major said in a notice on March 16. Its share price closed 10% down on the day.

"Based on this unprecedented environment, we are evaluating all appropriate steps to significantly reduce capital and operating expenses in the near term," ExxonMobil CEO Darren Woods said in a statement. "We will outline plans when they are finalised."

ExxonMobil previously set its 2020 capital expenditure at $33bn.

The US major has faced many downturns and has operated in a sustained low-price environment, Woods said, and would remain focused on being a low-cost operator that creates long-term value for shareholders. 

"We are confident that we will manage through these challenging times by taking deliberate action to keep our people safe, our environment protected and our company strong," he said.