Q2 2015 shows continued downward trend for oil majors.
Shell's figures for the second quarter of this year are still falling - earnings on a current cost of supplies basis were $3.4bn compared with $5.1bn for the same quarter a year ago. Earnings excluding identified items were down 37% for the same period. Cashflow from operating activities Q2 2015 was $6.1bn, close to $2bn lower than the same quarter last year.
BP showed a similar trend - underlying replacement cost profit for the quarter was $1.3bn, compared with $2.6bn for the previous quarter and against $3.6bn for Q2 2014. Although countered by continuing strong earnings from BP’s downstream businesses and lower cash costs throughout the Group, the organisation still could not overcome the downward pressure. The company stated the fall reflects the impact of continued low oil and gas prices, a reduced contribution from Rosneft and one-off charges arising from circumstances in Libya.
The second quarter for Chevron saw an even greater drop, with net income sliding from $5.7bn for the period in 2014 to just $571m in 2015. Included in the quarter were impairments of nearly $2bn and other charges of approximately $670m relating to project suspensions and adverse tax effects, all of which were non-cash charges. Sales and other operating revenues in second quarter 2015 were $37bn, compared to $56bn in the year-ago period.
It was the same story for ExxonMobil, with a drop of 52% in earnings in Q2 at $4.2bn, compared to $8.78bn in the same period last year. Earnings for the first half of the year show a drop of 49% from 2014 to 2015. And French producer, Total, matched the global gloom, reporting adjusted net income of $3.1bn, a 2% drop from the same period last year, despite productivity gains in all business segments. The first half of 2015 saw adjusted net income of $5.7bn, down 12% on the same period last year.
Not to be left out, ConocoPhillips also announced a poor quarter, reporting Q2 2015 with a net loss of $179m compared with a positive $2.1bn for the same time last year. Adjusted earnings for this quarter, excluding special items, were $8m compared with second-quarter 2014 adjusted earnings of $2.0bn. As with its competitors, it claimed lower and more volatile prices were to blame and is set to reduce expenditure in capital projects and deepwater drilling.
However, downstream operator Phillips 66 showed improved Q2 figures. Earnings of $1.01bn this quarter compare with favourably with $987m in Q1 2015. Adjusted earnings were $1bn, an increase of $168m from the previous period. “Our Refining, Chemicals, and M&S businesses delivered a strong quarter, providing solid earnings and cash flow,” said Greg Garland, chairman and CEO of Phillips 66. "We operated well, executed major turnaround activity and progressed our capital projects."
There was also good news for German-based chemical and additives independent, Fuchs, with a reported 10% increase in sales revenue providing a half year figure of €1bn ($1.09bn) and earnings increasing by 13% to €172m ($188m). The acquisitions of Deutsche Pentosin-Werke GmbH and Statoil Fuel & Retail Lubricants Sweden AB had no effect on the half-year financial statements 2015.