Chevron Corporation (CVX) announced earnings for the first quarter of its fiscal 2014 (1QFY14; ended March 31, 2014) before the opening bell today. The stock price of the San Ramon, California-based oil supermajor was down 1.5% in initial trading hours after the company missed revenue estimates for the quarter and reported a 27% decline in profits.
The shale oil boom in the US brought with it production gains and also pitfalls like the drop in oil prices which hit oil companies' revenue.
The upstream sector experienced a fall in profits due to the lower prices coupled with the higher cost of oil and gas exploration, however the downstream sector did better as the companies saw production costs fall, leading to improved refining margins.
By Cris Frangold:
Exxon Mobil (XOM), the largest oil company in the world by market capitalization, reported earnings below expectations because of stagnant demand for oil in the world as well as falling prices for natural gas in the U.S.
In an interim update released yesterday, Chevron Corporation (CVX) expects earnings for the fourth quarter (4Q) of fiscal year 2013 (FY13) to be comparable with 3QFY13 results but lower than the year-ago quarter. The California-based company reported upstream earnings of $5.09 billion and downstream earnings of $380 million in 3QFY13.
Cabot Oil & Gas Corporation announced its fourth-quarter fiscal year 2014 result on Friday. It reported quarterly earnings per share of $0.23, missing the consensus estimate by 1 cent. The oil and gas company had reported EPS of $0.18 per share in 4QFY13. Cabot posted revenue growth of 26.8% quarter-on-quarter (QoQ). The quarterly revenue of $618 million beat consensus estimate by $50.3 million.
The last month was quite disturbing for major oil producers as the oil price continued to tumble and affected their profits negatively. The crude oil companies are planning to cut down supply to stabilize the international market.
Chevron Corporation (CVX) reported results for the third quarter yesterday before the opening bell. The company reported net income of $5.59 billion, indicating a 15.8% year-over-year (YoY) increase. Net income beat consensus estimate by $590 million. Adjusted earnings for Chevron came in at $2.95, showing 17.1% YoY growth and beat consensus estimate by 17.5%.
BP plc (BP) released its financial results for the fourth quarter (4Q) of its fiscal year 2013 (FY13) today. The oil supermajor reported adjusted earnings of $0.90 per share, which beat analysts’ estimates of $0.88 for the quarter. Revenues for the same period were $93.72 billion, lower than analysts’ estimates of $95.78 billion by 2.15%.
The London-based company missed earnings estimates for the whole year FY13 by 3.49%; its EPS was $4.254 while analysts estimated $4.408. Revenues clocked in at $379.14 billion, trumping estimates of $355.36 billion by 6.7%.