HOUSTON - Ill-timed bets on rising demand have Exxon Mobil facing a shortfall of about US$48 billion through 2021, according to a Reuters tally and Wall Street estimates, a situation that will require the top US oil company to make deep cuts to its staff and projects.
The looming shortfall of about US$48 billion through 2021 was calculated using cash from operations, commitments to shareholder payouts and costs for the massive expansion program Exxon had planned. Now the company is embarking on a worldwide review of where it can cut expenses, and analysts believe the once unthinkable dividend cut has grown more likely.
"We remain committed to our capital allocation priorities - investing in industry advantaged projects, paying a reliable and growing dividend, and maintaining a strong balance sheet," said spokesman Casey Norton. DEBT NEARLY DOUBLES Exxon's cash from operations - estimated to be about US$17.4 billion this year - is US$20 billion below the funds needed for this year's already pared investment plan and shareholder dividend, a Reuters analysis showed.
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