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>>> Exxon's CEO On How Oil Giant Plans To Maintain Dividend, Focus On Balance Sheet


Benzinga

Jayson Derrick

April 07, 2020


https://www.benzinga.com/news/20/04/15759671/exxons-ceo-on-how-oil-giant-plans-to-maintain-dividend-focus-on-balance-sheet?utm_campaign=partner_feed&utm_source=yahooFinance&utm_medium=partner_feed&utm_content=site


Exxon's CEO On How Oil Giant Plans To Maintain Dividend, Focus On Balance


Oil giant Exxon Mobil Corporation is committed to maintaining its dividend, mostly due to a decades-long focus on maintaining a healthy balance sheet, CEO Darren Woods said Tuesday on CNBC's "Squawk Box."

CEO Says Exxon's Focus Unchanged

Exxon remains committed to satisfying the needs of its large retail investor base in paying dividends, and it won't shy away from tapping its balance sheet to come up with cash if needed in the short-term, Woods said.

The main focus of the balance sheet remains unchanged in that it is needed to support new projects, he said.

Exxon was on the receiving end of an S&P rating downgrade in March from AA+ stable to AA stable, but this has no impact on how management looks at its balance sheet, the CEO said.

Recovery Will Come, Woods Says

An oil recovery is "on the way," but the exact timing can't be anticipated, Woods said.

Exxon's current strategy is to invest in projects with no particular recovery curve to "get through" current headwinds, he said.

What's Next For Exxon

Improving standards of living and economic growth are among the two largest drivers of demand for oil, the CEO said.

These trends will re-emerge in the future. and Exxon needs to "be ready to meet those demands when that recovery happens," he said.

The stock was trading 3.95% higher at $42.07 at the time of publication Tuesday.

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