Exxon CEO Darren Woods promises investors a strong dividend despite 2020 losses

Exxon CEO Darren Woods promises investors a strong dividend despite 2020 losses

Exxon CEO Darren Woods emphasized the oil giant's commitment to its dividend after the company lost more than $20 billion in 2020, and as activist investors push for change.

"We're going to continue to return cash to shareholders through a very strong dividend," Woods said Thursday on CNBC's "Squawk Box."

He noted that 2020 was "certainly the worst environment" that Exxon has ever faced as the coronavirus brought global economies to a standstill, sapping demand for fuel. At one point, West Texas Intermediate crude futures dipped into negative territory “” an event that many had previously thought impossible.

"We had to strike that balance of continuing to invest for the future, continuing to pay a dividend, and we used our balance sheet to kind of draw down through these very low periods of time," Woods said.

Amid the challenges over the last year, Exxon slashed its capital spending plan and reduced its workforce in an effort to preserve its dividend. The cost-cutting measures meant the company continued its payout, although Exxon didn't raise its dividend in a break with tradition.

The company's current yield of 6.2% is among the highest in the S&P 500, making it an attractive bet for income-seeking investors.

Woods' comments follow Exxon's