Analysts predict the five largest international oil and gas companies will report their lowest quarterly earnings in three years due to lower oil and gas prices, weaker oil trading, declining LNG business, and shrinking margins. This decline in profits is expected to pressure share buybacks and dividends, potentially forcing the supermajors to increase borrowing and accelerate cost-cutting measures.
The five biggest international oil and gas majors are expected to report in the coming weeks their lowest quarterly earnings in three years, data compiled by Bloomberg showed on Tuesday. Lower oil and gas prices, weaker oil trading and LNG business at some of the European majors, and declining margins across the board are expected to weigh on the fourth-quarter earnings of ExxonMobil, Chevron, BP, Shell, and TotalEnergies, according to analysts and trading updates from the majors themselves.
supermajors Exxon and Chevron beat analyst estimates, offsetting most of the negative impact from lower oil and gas prices compared to a year ago and very weak refining margins, especially in Europe. For the fourth quarter, some of the supermajors have already warned of weaker results for Q4 compared to the previous quarter. Weak oil trading and declining refining margins are expected to lower the fourth-quarter earnings at BP.
OIL PRICES EARNINGS ENERGY INDUSTRY INVESTOR RETURNS COST CUTTING
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