ExxonMobil and Chevron released their second quarter earnings reports before opening bell this morning. ExxonMobil posted earnings of $1 per share on $74.1 million. Analysts had been projecting earnings per share of $1.11 and revenue of $72.48 billion. In the same quarter last year, the oil giant reported earnings of $2.05 per share and revenue of $111.21 billion.
Chevron reported earnings of 30 cents per share and $36.83 billion in revenue, compared to the consensus estimates of $1.16 per share in earnings and $35.7 billion in sales. In the same quarter last year, the company reported revenue of $55.58 billion and earnings of $2.98 per share.
ValueWalk's Raul Panganiban interviews William Burckart, The Investment Integration Project’s President and COO, and discuss his recent book that he co-authored, “21st Century Investing: Redirecting Financial Strategies to Drive System Change”. Q1 2021 hedge fund letters, conferences and more The following is a computer generated transcript and may contain some errors.
ExxonMobil misses earnings estimates
ExxonMobil’s earnings fell 52% year over year to $4.2 billion, while per-share earnings declined 51% year over year. The company cut capital and exploration expenditures 16% to $8.3 billion. Cash flow from operations and asset sales amounted to $9.4 billion. Oil equivalent production rose 3.6% from last year on the back of an 11.9% increase in liquids and a 5.8% decline in natural gas.
Upstream earnings fell $5.9 billion to $2 billion, with a decline in upstream liquids cutting the segment’s earnings by $4.5 billion. U.S. upstream operations saw a $47 million loss. Higher volume increased earnings $330 million as the result of new developments. ExxonMobil increased liquids production to 2.3 million barrels and cut natural gas production to 10.1 billion cubic feet.
Downstream earnings rose to $1.5 billion with stronger margins contributing an extra $1.1 billion but mix effects having a negative impact of $80 million. ExxonMobil recorded 5.7 million barrels per day of petroleum products. Chemical earnings increased to $1.2 billion on the back of margin improvements and better volume mix.
“Our quarterly results reflect the disparate impacts of the current commodity price environment, but also demonstrate the strength of our sound operations, superior project execution capabilities, as well as continued discipline in capital and expense management,” said ExxonMobil Chairman and CEO Rex Willerson in a statement.
As of this writing, shares of ExxonMobil were down 1.81% at $81.51 per share in premarket trades.
Chevron’s upstream operations post losses
Chevron’s net earnings include $1.96 billion in impairments and $670 million in product suspension-related charges. The U.S. upstream operations swung to a loss of $1.04 billion compared to last year’s income of $1.05 billion. The international upstream operations recorded losses of $1.18 billion. Management blamed the company’s weak performance on the almost 50% decline in crude oil prices. Chevron’s downstream earnings rose from $721 million to $2.956 billion, including both international and U.S..
The oil giant recorded 2.6 million barrels per day in worldwide oil equivalent production, an increase from the 2.55 million barrels a day in last year’s second quarter. The increase was the result of project ramp-ups. The average price per barrel of crude and natural gas liquids in the U.S. fell from $92 last year to $50 this year. Net oil equivalent production increased 9% to 730,000 barrels a day. Internationally, the price fell from $101 last year to $56 this year.
As of this writing, shares of Chevron were down 1.97% at $91.25 per share in premarket trading.