Exxon Mobil's Profit Plunges 63%
Exxon Mobil is the world’s largest publicly traded oil company. Exxon Mobil Corp. XOM 0.42 % , the world’s largest publicly traded oil company, saw its profit plunge 63% to the lowest level since 1999, a year when it nearly doubled in size by acquiring rival Mobil in an $80 billion deal. The sharp decline came amid a loss from its business producing oil and natural gas, one that largely came from flagging operations in U.S. shale basins. Profits from refining oil into products such as gasoline and diesel, an area that had helped the company weather the blow of lower prices in the past 18 months, also fell by almost half. Investors shrugged off the declines, reflecting optimism stemming from a recent rally in crude prices as the company beat analyst expectations. Shares of Exxon edged up 0.3% in premarket trading to $88.25 and are up more than […]
Chevron to Cut More Jobs as It Reports Wider-Than-Expected Loss
Chevron reported its quarterly results Friday. Chevron Corp. on Friday said it would cut another 1,000 jobs as it reported a wider-than-expected loss as oil prices continued to languish during the first quarter. The newly announced layoffs, which will happen later this year, will bring Chevron’s job cuts to 8,000 employees, or 12% of its workforce. Shares in the second-largest energy company in the U.S. by revenue fell 1.5% to $100.91 in premarket trading. Chief Executive John Watson said the company’s upstream business was impacted by a more than 35% decline in crude-oil prices. The company’s average sales price per barrel of crude oil and natural gas liquids was $26 in the first quarter, down from $43 a year earlier. “Our downstream operations continued to perform well, although overall industry conditions and margins this quarter were weaker than a year ago,” said Mr. Watson. Chevron said late last year […]
Report: U.S. wind energy sector booming
With the industry reporting one of its strongest performances on record, the American Wind Energy Association said it expects a boom over the next five years. A quarterly report from the AWEA said more than 500 megawatts of new wind energy were added to the U.S. grid during the first quarter and construction started on another 2,000 MW. Tom Kiernan, the group’s CEO, said in a statement the tide is turning in favor of a widespread commercial wind energy sector. “As the wind business builds momentum, we’re prepared to double wind’s contribution to America’s electricity supply in the next five years,” he said. An early April report from the International Energy Agency finds electricity produced […]
Refining’s silver lining loses luster at Exxon and Chevron
Exxon Mobil Corp and Chevron Corp on Friday reported their most dismal quarterly results in more than a decade on low oil prices and an oversupplied fuel market that hurt what had been lucrative refining margins. As crude prices slid 60 percent from mid-2014, large integrated energy companies have touted the virtues of a business model that both produces oil and refines it. Refiners typically see profitability increase when the price of their main feedstock – oil – falls. But growing fuel inventories and weak demand are now hammering the refining industry, turning a typical advantage for integrated oil companies on its head. First-quarter pain in the downstream units, which came after major U.S. refiners slashed the amount of cheap crude they were processing in February, is a sign the road ahead for oil majors may turn […]
Oil on track for biggest monthly gain in seven years
Oil is on track for its biggest monthly gain in seven years, boosted by a weak dollar and a decline in US production that has helped to ease concern about a persistent supply glut. Brent crude, the international benchmark, has gained over 22 per cent in April — up more than 70 percent from its January lows. The US marker, West Texas Intermediate, has recorded a similar increase this month. The rebound in prices has come as investors position themselves for the biggest decline in non-Opec supply in 25 years and what they hope will be a more balanced market later in the year.
“Fresh year-to-date highs have been this week’s predominant theme,” said Tamas Varga at London-based oil broker PVM. “The relentless march higher continues.” On Friday, Ice June Brent traded as high as $48.50 a barrel before paring gains to trade at $47.94. Nymex June WTI dipped 17 cents to $45.85 a barrel after hitting $46.78 earlier in the day. Both oil markers hit their highest levels since November on Friday morning, having rebounded more than 70 percent from 13-year lows reached earlier this year.
