Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Exxon Mobil Corp (XOM) plans short-term cuts in capital and operating expenses due to the coronavirus pandemic and has begun informing contractors and vendors, according to a report by Reuters, citing Exxon spokesman Jeremy Eikenberry.

The plans will be announced, when they become final, the representative said.

Exxon Mobil shares closed lower for a second consecutive trading session in New York on Monday. The stock went down 3.94% ($1.29) to $31.45, after touching an intraday low at $30.17, or a price level not seen since July 23rd 2002 ($29.99).

Shares of Exxon Mobil Corporation have retreated 54.93% so far in 2020 compared with a 30.75% loss for the benchmark index, S&P 500 (SPX).

In 2019, Exxon Mobil Corp’s stock went up 2.33%, thus, it again underperformed the S&P 500, which registered a 28.88% gain.

“Based on this unprecedented environment, we are evaluating all appropriate steps to significantly reduce capital and operating expenses in the near term,” Exxon’s Eikenberry was quoted as saying by Reuters.

“We are notifying contractors and vendors of our intended reductions, and they may be adjusting their staffing and budgets accordingly,” the spokesperson added.

Over the past weekend, Exxon cut production at its refinery in Baton Rouge, Louisiana, while last Friday it slashed the number of contract workers by 1,800.

Additionally, the oil major will probably postpone a $30-billion liquefied natural gas project in Mozambique.

Analyst stock price forecast and recommendation

According to CNN Money, the 19 analysts, offering 12-month forecasts regarding Exxon Mobil’s stock price, have a median target of $48.00, with a high estimate of $67.00 and a low estimate of $32.00. The median estimate represents a 52.62% upside compared to the closing price of $31.45 on March 23rd.

The same media also reported that at least 15 out of 23 surveyed investment analysts had rated Exxon Mobil’s stock as “Hold”, while 4 – as “Buy”. On the other hand, other 4 analysts had recommended selling the stock.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Airlines in Canada with the most hidden feesAirlines in Canada with the most hidden fees While many people are already happily booking their summer holidays, Canada has some of the most expensive airfares in the World, with airline tickets costing much more for similar distances here than in the United States, Europe, Asia or even […]
  • Oil gains on China economic dataOil gains on China economic data Oil advanced on Monday, extending last weeks gains as mixed but matching expectations economic data from China boosted the countrys demand outlook. GDP growth matched expectations, while industrial production failed. However, oil consumption […]
  • Forex Market: GBP/JPY daily forecastForex Market: GBP/JPY daily forecast During yesterday’s trading session GBP/JPY traded within the range of 171.72-172.62 and closed at 171.87, losing 0.17% for the day.At 7:45 GMT today GBP/JPY was down 0.56% for the day to trade at 170.89. The pair touched a daily high at […]
  • Hewlett Packard Enterprise appoints new Chief Financial OfficerHewlett Packard Enterprise appoints new Chief Financial Officer Hewlett Packard Enterprise said on Friday that it had appointed Marie Myers as its new Executive Vice President and Chief Financial Officer, effective January 15th 2024.Myers has been CFO of HP Inc since 2021 and has spent over 20 […]
  • Thales plans to hire 12,000 people amid strong demand, CEO saysThales plans to hire 12,000 people amid strong demand, CEO says Europe's largest arms electronics provider, Thales (TCFP), intends to hire 12,000 new employees in 2023 amid a strong demand across the group's product range.Thales Chief Executive Officer Patrice Caine told France's Le Journal du […]
  • Forex Market: AUD/USD holds gains as upcoming inflation figures will be the next test for interest rate outlookForex Market: AUD/USD holds gains as upcoming inflation figures will be the next test for interest rate outlook AUD/USD held gains registered in the prior trading day on Tuesday as market players awaited inflation figures in the world's two largest economies for more clues on central bank interest rates.AUD/USD has remained within the […]