The oil giant reduced capital spending by 30% to around US$23 billion for 2020 and will trim operating expenses by 15%, said the company, which maintained its dividend earlier this week.

The first quarter loss compared with US$2.4 billion in profits in the year-ago period. Revenues fell 11.7% to US$56.2 billion.

The loss included US$2.9 billion in non-cash costs on inventory and assets because of low commodity prices.

Exxon’s moves follow an unprecedented drop in oil prices, with US futures temporarily sinking into negative territory in April amid a supply glut that has nearly filled US commercial inventory stockpiles.

“Covid-19 has significantly impacted near-term demand, resulting in oversupplied markets and unprecedented pressure on commodity prices and margins,” said Chief Executive Darren Woods.

“While we manage through these challenging times, we are not losing sight of the long-term fundamentals that drive our business. Economic activity will return, and populations and standards will increase, which will, in turn, drive demand for our products and recovery of the industry.”

Shares fell 2.4% to US$45.27 in pre-market trading.