The profits of the two largest US oil producers, ExxonMobil and Chevron, declined in the fourth quarter of last year. However, the results exceeded market expectations as both companies focused on reducing costs. Exxon’s results were also boosted by cheaper oil production in the Permian Basin and Guyana.
Chevron reports lower profits
According to a press release, Chevron reported net profits of $2.8 billion in the fourth quarter, compared to $3.24 billion a year earlier. Adjusted earnings per share fell from $2.06 to $1.52 year-on-year. Analysts expected adjusted earnings of $1.45 per share, according to LSEG data.
Chevron’s fourth-quarter results included a $128 million loss resulting from pension settlement costs. Currency effects reduced the company’s earnings by $130 million, Chevron added.
ExxonMobil’s fourth-quarter profit fell
Exxon’s profit fell year-on-year from $7.39 billion to $6.5 billion in the last quarter of last year, the company said. Adjusted earnings per share were $1.71, exceeding analysts’ estimates of $1.68 per share.
The financial performance of oil producers was under considerable pressure throughout last year. An oversupply in the oil market caused the price of Brent crude to fall by 19 percent, according to Reuters.
Source: Reuters
