Exxon, Chevron Profits Soar as Big Oil Returns to Dominance-- update
02 Noviembre 2018 - 07:52AM
Noticias Dow Jones
By Bradley Olson
Exxon Mobil Corp. and Chevron Corp. each reported their highest
third-quarter profits in four years as the world's largest oil
companies appeared to have finally shaken off the doldrums of a
yearslong oil price crash.
Exxon's net income rose 57% to $6.24 billion as improved
operations helped the company reap the benefits of higher prices
for drilling and better refining margins. Chevron's profits doubled
to $4 billion.
Both companies beat expectations and rallied Friday, following
the performance of nearly all the world's largest Western energy
companies. BP PLC, France's Total SA and Norway's Equinor ASA have
all fared well with investors in the past week after exceeding
profit forecasts.
Big oil companies saw their profits slump following a world-wide
plunge in oil prices that began in 2014 and lasted several years.
But prices have recovered this year, and the companies saw a marked
uplift to their profits as a result in the third quarter.
Investors had been underwhelmed with Exxon and Chevron's
performance in the past year. Before today, the companies' stock
prices had fallen by about 4% in the last 12 months even as oil
prices rose by about 30%, reflecting the disappointment of some
shareholders. Exxon in particular had faced operational challenges,
and its quarterly production from April to June had reached the
lowest level in a decade.
The company said it had resolved those issues and production
reached about 3.8 million barrels a day, a slight decline from a
year ago.
"Operational performance improved significantly versus the
second quarter with lower levels of scheduled maintenance and
reliability levels in line with our expectations," Exxon Chief
Executive Darren Woods said.
Chevron production set a company record of about 2.9 million
barrels a day, including new output from giant natural-gas export
projects in Australia and growth in North America.
"Our strong financial results reflect higher production and
crude oil prices coupled with a continued focus on efficiency and
productivity," Chevron Chief Executive Michael Wirth said.
Exxon and Chevron continued to significantly ramp up operations
in the Permian basin in Texas and New Mexico, one of the hottest
oil fields in the world. Exxon now has 38 rigs running in the
region, and the company unit responsible for shale production
reported its third-straight quarterly profit.
Profit margins also rose in the refining sector for Exxon. The
company was able to buy crude in some parts of the U.S. and Canada
that sold at a discount because it was landlocked after production
outstripped pipeline capacity.
--Allison Prang contributed to this article.
Write to Bradley Olson at Bradley.Olson@wsj.com
(END) Dow Jones Newswires
November 02, 2018 09:37 ET (13:37 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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