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.
For energy companies, 2015 has been an eventful year. Crude oil prices saw numerous swings during this time, and remained at the lower side by the end. Bidness Etc compares and contrasts the financial performance of the two oil giants – Exxon Mobil Corporation (NYSE:XOM) and Chevron – during this period, and suggests which of these is likely to come out as the better player in 2016.
The September 30 short interest for Exxon Mobil Corporation (NYSE:XOM) touched five-year high of 65.79 million shares. A lower crude environment had hurt the company’s upstream exploration and production volumes significantly. Investors thus were skeptical over the future stock performance and increased their short positions.
Imperial Oil Ltd., a Canadian affiliate of Exxon Mobil Corp., said profit in the third quarter sank even after it boosted production as oil stuck near six-year lows.
Net income fell to $479 million, or 56 cents a share, from $936 million, or $1.10, a year earlier, the Calgary-based company said Friday in a statement.
Tech giant Apple Inc (NASDAQ:AAPL) has grown to twice the size of the world’s second-largest publicly traded company Exxon Mobil Corporation (NYSE:XOM) based on market capitalization. Its market capitalization of almost $750 billion exceeds that of Exxon by over $370 billion.
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.
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.
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.