Why have the earnings of the five major international oil companies declined?

In the second quarter of this year, signals of global economic cooling intensified. Amid the U.S. Federal Reserve’s high-interest-rate environment, global financial fragility became evident, and world commodity prices underperformed expectations—exhibiting a pattern of “rising first, then falling.” Escalating international geopolitical tensions and heightened market uncertainty adversely affected oil and gas supply chains and transportation security; their spillover effects further undermined oil and gas supply security and supply-chain resilience, resulting in international oil and gas prices remaining range-bound at medium-to-high levels. Falling international natural gas prices, declining refining margins, and asset impairments collectively led to year-on-year declines in operating performance—particularly net profit—for ExxonMobil, Chevron, Shell, TotalEnergies, and BP. Second-Quarter Net Profit Decline for the Five Major International Oil Companies In Q2, these five companies generated total revenue of USD 321.291 billion, up 2.5% year-on-year, and achieved an unadjusted net profit attributable to parent company shareholders (hereinafter “net profit”) of USD 20.849 billion, down 9% year-on-year. In the first half of the year, their combined revenue totaled USD 634.032 billion, down 3.9% year-on-year, while net profit amounted to USD 49.911 billion, down 21.3% year-on-year. The substantial year-on-year decline in Q2 and H1 net profit among these five major international oil companies has drawn industry attention. ExxonMobil: Q2 revenue stood at USD 93.06 billion, up 12.2% year-on-year; net profit reached USD 9.24 billion, up 17.3% year-on-year. For H1, revenue totaled USD 176.143 billion, up 3.9% year-on-year; net profit was USD 17.46 billion, down 9.6% year-on-year. Chevron: Q2 revenue was USD 51.181 billion, up 4.7% year-on-year; net profit was USD 4.434 billion, down 26.2% year-on-year. For H1, revenue totaled USD 99.897 billion, up 0.2% year-on-year; net profit was USD 9.935 billion, down 21.1% year-on-year. Shell: Q2 revenue was USD 75.057 billion, down 1.3% year-on-year; net profit was USD 3.517 billion, up 12.2% year-on-year. For H1, revenue totaled USD 149.76 billion, down 9.3% year-on-year; net profit was USD 10.874 billion, down 8.2% year-on-year. TotalEnergies: Q2 revenue was USD 53.743 billion, down 4.5% year-on-year; net profit was USD 3.787 billion, down 7.4% year-on-year. For H1, revenue totaled USD 110.021 billion, down 7.4% year-on-year; net profit was USD 9.508 billion, down 1.4% year-on-year. BP: Q2 revenue was USD 48.25 billion, down 2.5% year-on-year; it reported a net loss of USD 129 million, compared with net profit of USD 1.792 billion in Q2 2023—a sharp deterioration. For H1, revenue totaled USD 98.211 billion, down 7.7% year-on-year; net profit was USD 2.134 billion, down 78.7% year-on-year.

Summary of Q3 2024 financial results for 29 oil companies including Saudi Aramco, Sinopec, CNPC, ExxonMobil, Shell, and Schlumberger.

Petrobras (Brazil) announced its Q3 2024 results: quarterly revenue was USD 23.366 billion, compared with USD 25.552 billion in the same period last year; net profit attributable to shareholders was USD 5.87 billion, versus USD 5.456 billion year-on-year. ConocoPhillips announced its Q3 2024 results: total quarterly revenue was USD 13.604 billion, versus USD 14.866 billion year-on-year; net profit was USD 2.059 billion, versus USD 2.798 billion year-on-year. Occidental Petroleum announced its Q3 2024 results: total net sales were USD 7.154 billion, versus USD 7.4 billion year-on-year; net profit attributable to common shareholders was USD 0.964 billion, versus USD 1.156 billion year-on-year. Europe Shell PLC announced its Q3 2024 results: total quarterly revenue was USD 72.462 billion, versus USD 78.011 billion year-on-year; adjusted EBITDA was USD 16.005 billion, versus USD 16.336 billion year-on-year; net profit attributable to shareholders was USD 4.291 billion, versus USD 7.044 billion year-on-year; adjusted net profit was USD 6.028 billion, versus USD 6.224 billion year-on-year. TotalEnergies announced its Q3 2024 results: quarterly sales were USD 52.021 billion, versus USD 59.019 billion year-on-year; net profit from continuing operations was USD 2.361 billion, versus USD 6.69 billion year-on-year. BP p.l.c. Group announced its Q3 2024 results: net profit attributable to shareholders was USD 0.206 billion, versus USD 4.858 billion year-on-year; underlying replacement-cost (RC) profit—a key profitability metric—was USD 2.267 billion, versus USD 3.293 billion year-on-year; total quarterly revenue was USD 48.33 billion, versus USD 54.016 billion year-on-year. Equinor announced its Q3 2024 results: total quarterly revenue was USD 25.446 billion, versus USD 26.024 billion year-on-year; net profit was USD 2.285 billion, versus USD 2.501 billion year-on-year. Eni (Italy) announced its Q3 2024 results: group sales were EUR 20.658 billion (approx. USD 21.7 billion), down 7% year-on-year from EUR 22.319 billion; operating profit was EUR 1.36 billion, down 56% year-on-year from EUR 3.126 billion; net profit attributable to shareholders was EUR 0.522 billion, versus EUR 1.916 billion year-on-year; adjusted net profit attributable to shareholders was EUR 1.271 billion, down 30% year-on-year from EUR 1.818 billion. Repsol Group announced its Q3 2024 results.

BP flags $3-4.5 billion in impairments for third quarter

23 hours ago

BP anticipates $3-4.5 billion in impairments for its third-quarter results, primarily affecting its gas and low-carbon energy segment, while refining margins are projected to reach $46.7 per barrel.

reuters

2026-10-12

BP flags $3-4.5 billion in impairments for third quarter

BP flags $3-4.5 billion in impairments for third quarter

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