Leading global oil and gas companies are set to announce their lowest quarterly earnings in three years in the coming weeks.
Analysts and company trading updates indicate that lower oil and gas prices, weaker oil trading, underperformance in the Liquefied Natural Gas (LNG) sector among some European majors, and declining profit margins across the industry are expected to impact the fourth-quarter earnings of ExxonMobil, Chevron, BP, Shell, and TotalEnergies.
According to a Bloomberg report, Big oil will continue to place first, returns to investors,so they may have to borrow more or accelerate cost cutting measures as the decreased profits that still remain in the billions of US dollars, are set to restrict the Supermajor’s finances thereby potentially putting share buyback and dividends under pressure.
Record production,in the 3rd quarter helped the US Supermajor’s Exxon and Chevron beat analyst estimates, counter balancing majority of the negative results from lower oil and gas prices compared to a year ago and weak refining margins, especially in Europe.
Supermajors have warned about weaker results for the fourth quarter as opposed to the previous quarter.
Decreasing refining margins are expected to reduce the fourth quarter earnings at BP. Refining comeback activity also, is set to have a higher impact for the fourth quarter compared to the 3rd quarter.
Exxon Mobil for the fourth quarter of 2024,flagged a weaker profit because of lower refining margins, evaluating the size of the negative results at $1.75 billion.
