AUTONEWS

Quarterly profits of more than $40 billion for the 5 largest oil companies

Shell reported adjusted earnings of $9.6 billion in the first three months of the year, well ahead of analysts’ expectations of $8.6 billion, and corresponding 2022 earnings of $9.1 billion , ($3.2 billion between January and March 2021).

Its net profit for the first quarter of the year increased by 22% and reached 8.7 billion dollars. The quarterly turnover amounts to 89 billion dollars (+7%).

The earnings boost was driven by a surge in oil and gas prices, with the oil giant keeping the rate of its share buyback program steady at $4 billion over the next three months, keeping the dividend unchanged at $0.2875 per share. 

Commenting on the first quarter results, the company’s CEO, Wael Sawan, said that: The company delivered strong results and strong operating performance, in a context of continued volatility, while continuing to provide vital supplies of secure energy.

The sharp drop in natural gas prices in the quarter affected Shell’s counterparty, which saw its profits fall 18% in the quarter to $4.9 billion. However, this was offset by a 139% jump in profit to $1.8 billion from its chemicals and refined products unit.

Shell announced that its quarterly results reflect improved operational performance and lower costs to run its day-to-day operations. It added that strong results from fuel trading offset the impact of weaker oil and gas prices.

BP: Shell’s results come after those from BP, which reported a drop in first-quarter profit but beat analysts’ expectations thanks to strong oil and gas trading.

The British energy giant posted a profit of $4.96 billion for the first quarter as lower oil and natural gas prices took a toll. It is noted that in the fourth quarter of last year its profits were 4.8 billion dollars and in the first quarter of 2022 they were 6.2 billion dollars.

Together, BP, Shell, ExxonMobil, Chevron and TotalEnergies will record profits of more than $40 billion in the first quarter of 2023.

TOTAL: TotalEnergies saw first-quarter earnings rise 12% to $5.6 billion. US oil and gas giants ExxonMobil and Chevron also saw profits soar in the first quarter despite lower energy prices, largely thanks to their refining operations and austerity measures.

ExxonMobil’s net income more than doubled from the same period in 2022, reaching $11.4 billion, a record for the first quarter.

Chevron’s net income is estimated to have risen 5% to $6.6 billion.

by Kyriakos Pilidis