Large oil companies issue record volume in debt

According to Data from Refinitiv, the world's top seven energy companies BP, Shell, ExxonMobil, Chevron, Equinor, Total and Eni raised $60 billion in debt in the quarter, nearly half of the $132 billion in loans to the oil and gas sector in the period.

Due to the Covid-19 pandemic, companies would have taken advantage of low rates to issue a record amount in debt in the second quarter of 2020 and expand cash reserves as protection against a revenue collapse.

As a result of the isolation measures, which led to a sharp drop in fuel consumption, corporate revenues are expected to fall sharply in the second quarter. Exxon, for example, is expected to post its second consecutive quarterly loss in the period, while Shell said its second-quarter fuel sales fell about 40 percent.

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