Exxon Mobil (NYSE: XOM) an American multinational oil and gas corporation headquartered in Irving, Texas disclosed today that they are “lowering cash operating expenses by 15 percent in response to low commodity prices resulting from oversupply and demand weakness” caused by coronavirus outbreak.
The move comes expected and it is ment to increase efficiencies and reduce costs. COmpany also announced tha it is reducing its 2020 Capex by 30 percent.
“The long-term fundamentals that underpin the company’s business plans have not changed — population and energy demand will grow, and the economy will rebound. Our capital allocation priorities also remain unchanged. Our objective is to continue investing in industry-advantaged projects to create value, preserve cash for the dividend and make appropriate and prudent use of our balance sheet.”-said Darren Woods, chairman and CEO of Exxon Mobil Corporation.
The biggest share of the capital spending reduction will be in the Permian Basin, until market conditions improve.