ExxonMobil and Chevron released their latest earnings reports before opening bell this morning. Exxon posted earnings of 43 cents per share on revenue of $48.7 billion, against the consensus estimates of 31 cents per share and $45.31 billion.
Chevron reported losses of 39 cents per share on $23 billion in revenue, compared to the consensus of 17 cents per share in losses and $21.47 billion in revenue. In last year’s first quarter, the company posted $1.23 per share in earnings.
ExxonMobil’s profits plunge
ExxonMobil’s profits plunged 63% from $4.9 billion in the year-ago quarter to $1.8 billion as a result of tumbling commodity prices and weaker margins in the refining business. Chemical earnings climbed 38% to $1.4 billion as margins expanded and volumes increased. Downstream earnings declined to $906 million; demand for gasoline remained fairly strong, but margins weakened in the quarter.
The energy giant’s new projects resulted in an 11.5% increase in liquids production, which went up to 261,000 barrels per day. Upstream volumes increased to 4.3 million barrels of oil equivalent, and capital and exploration expenses declined 33% to $5.1 billion.
ExxonMobil’s losses in its U.S. Upstream business widened year over year from $52 million to $832 million, while non-U.S. Upstream operations recorded $756 million in profits. The U.S. Downstream business recorded earnings of $187 million, a decline of $187 million from the year-ago quarter, while non-U.S.- Downstream operations saw a $381 million decline in earnings to $719 million.
ExxonMobil shares increased 0.89% to $88.85 in premarket trading this morning.
Chevron said global oil equivalent production was 2.67 million barrels, which was ahead of consensus at 2.64 million. Capital expenditures plunged from $8.6 billion last year to $6.5 billion in this year’s first quarter. The losses in the company’s U.S. Upstream business widened significantly from $460 million in the year-ago quarter to $850 million this year on the back of tumbling crude and natural gas realizations. Average price per barrel of crude and natural gas liquids was $26, a decline from $43 last year. Natural gas sold at an average of $1.32 per thousand cubic feet, compared to $2.27 last year. The International Upstream business swing to a loss from $2 million in earnings last year to losses of $609 million this year.
The U.S. Downstream business recorded profits of $247 million, compared to $706 million last year, while the International Downstream business saw earnings decline from $717 million to $488 million.
Shares of Chevron slumped 1.45% to $100.92 in premarket trades this morning.