LONDON, May 19. /TASS/. The world’s largest oil companies are preparing for a prolonged slump in crude oil prices - the third in a decade - and are seeking to reassure investors of their readiness for the worst, the Financial Times (FT) reported.
According to the publication, executives at ExxonMobil, Chevron, Shell, TotalEnergies, and BP used their quarterly earnings reports to assure investors that their balance sheets remain solid and that they will not rush into unnecessary cuts in spending or shareholder returns.
Chevron, which earlier announced significant workforce reductions, assured investors that it would maintain free cash flow at $9 bln with oil priced at $60 per barrel. Shell, in turn, stated that it could continue paying dividends even if crude prices dropped to $40, adding that it has not revised its spending plans. The implementation of previously announced projects is ongoing, according to Shell’s Chief Financial Officer Sinead Gorman.
Patrick Pouyanne, CEO of TotalEnergies, emphasized that the French company is responding now just as it did during the COVID-19 crisis, without panic. He recalled that the company refrained from cutting dividends even at the height of the pandemic.
Crude oil prices fell below $60 per barrel in April and are forecast to average around $65 through the end of the year, given that the OPEC+ cartel, which includes Saudi Arabia and Russia, continues to ramp up supply, the article noted.