Chevron, Exxon Mobil Q4 Profits Beat, Revenues Miss

by Ike Obudulu Posted on February 1st, 2019

Oil majors Chevron Corp. (CVX) and Exxon Mobil Corp. (XOM) on Friday reported fourth-quarter profits that beat analysts’ expectations, while revenues missed expectations. The results of both companies were aided in the prior-year quarter by benefits related to the U.S. tax reform. The two companies also reported higher oil-equivalent production in the quarter.

Exxon Mobil’s fourth-quarter net income fell 28 percent to $6.00 billion or $1.41 per share from $8.38 billion or $1.97 per share in the prior-year quarter.

The year-ago period’s results included a benefit of $5.9 billion related to the U.S. tax reform, partially offset by asset impairments of $1.3 billion.

Excluding U.S. tax reform and impairments, net earnings grew to $6.41 billion from $3.73 billion per share last year.

On average, 18 analysts polled by Thomson Reuters expected earnings of $1.08 per share. Analysts’ estimates typically exclude one-time items.

Total revenues and other income rose to 71.90 billion from $66.52 billion last year, but missed analysts’ consensus estimate of $78.38 billion.

Exxon Mobil’s oil-equivalent production rose to 4.01 million oil-equivalent barrels from 3.99 million oil-equivalent barrels per day last year.

The company’s upstream earnings fell to $3.31 billion from $8.35 billion last year, as higher natural gas prices and liquids volume growth were offset by weaker crude oil prices.

Downstream earnings rose to $2.70 billion from $1.56 billion last year, while Chemical segment earnings declined to $0.74 billion from $1.27 billion last year, reflecting weaker margins.

Meanwhile, Chevron’s fourth-quarter attributable net income rose to $3.73 billion or $1.95 per share from $3.11 billion or $1.64 per share in the prior-year quarter.

The latest quarter’s results include an asset write-off totaling $270 million, while the year-ago period’s results included tax benefits of $2.02 billion related to U.S. tax reform.

The Street expected earnings of $1.87 per share.

Total revenues and other income rose to $42.35 billion from $37.62 billion a year ago, but missed analysts’ consensus estimate of $46.13 billion.

Chevron’s worldwide net oil-equivalent production rose to 3.08 million barrels per day from 2.74 million barrels per day last year.

Upstream segment’s earnings fell to $3.29 billion from $5.29 billion last year, reflecting the absence of the prior-year benefit of $3.33 billion from the U.S. tax reform, partly offset by higher crude oil production and realizations.

Downstream earnings declined to $0.86 billion from $1.28 billion last year, which included a $1.16 billion benefit from U.S. tax reform.

Chevron expects that its 2019 production will continue to grow by 4 to 7 percent, excluding the impact of asset sales.

Author

Ike Obudulu

Ike Obudulu

Versatile Certified Fraud Examiner, Chartered Accountant, Certified Internal Auditor with an MBA in Finance And Investments who has both worked for and consulted with some of the world's largest companies on main street and wall street in over 20 countries, Ike brings his extensive reporting and investigations experience to bear on his role as Chief Editor.
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