Low crude prices peg back oil majors' Q3 growth.
BP has reported its third quarter results for 2014, showing an 18% reduction in earnings, apparently due to the global drop in oil prices and a double hit from its Russian business and the continued impact of Deep Water Horizon. Underlying replacement cost profit fell $0.7bn to $3bn year-on-year. Operating cash flow for the quarter was $9.4bn, compared with $6.3b in the same period in 2013. Divestments with a cumulative value of $4bn have now been agreed towards a total of $10bn expected by the end of 2015.
A healthier picture is being reported by Shell for the third quarter 2104 with earnings of $5.3bn, up from $4.2bn in the same quarter last year, despite the recent decline in oil prices. Cash flow from operating activities was $12.8bn, compared with $10.4bn year-on-year, with asset sales bringing £11.6bn to the company.
There was a 3% increase on earnings for ExxonMobil with this year's Q3 showing at almost $8.1bn compared to last year's $7.8bn. Company Chairman, Rex W. Tillerson, commented that the figures were "riven by higher margins and improved operations in the Downstream and Chemical businesses, partially offset by the impact of lower Upstream realizations." Cash flow from operations and asset sales was $12.5bn.
With an adjusted net income of $3.6bn, French oil giant Total reported an increase of 13% on the second quarter's results, although there was a 2% reduction on numbers from the same quarter in 2013. The company says this reflects a lower contribution from its upstream business, caused mainly by the lower price of Brent crude. Adjusted cash flow from operations is $5.93bn in the third quarter of 2014, down 7% from the same period in 2013.
Chevron's earnings for the third quarter of 2014 were up $0.6bn at $5.6bn from the same period of 2013, despite declining crude prices. Sales and other operating revenues in third quarter 2014 were $52bn, compared to $57bn in the period in 2103.
Phillips 66 has had a profitable third quarter this year, reporting earnings of $1.2bn up from $863m year-on-year, with adjusted up $277m to $1.1bn from the second quarter of 2014. The company's CEO reported strong margins in the refining and marketing businesses.
Increased earnings were also announced by ConocoPhillips at $2.7bn, compared with third quarter of 2013 earnings of $2.5bn. One of this quarter's highlights is the discontinued operations in Nigeria due to the sale of the business. This has brought in proceeds of $1.4bn, inclusive of deposits previously received.
Finally, additives independent, Fuchs, has reported sales revenues up by just under 2% to €1.4bn (+4% when currency adjusted) with earnings before interest and tax (EBIT) at €236m, a fraction lower than 2013. At €164m, earnings after tax were just 1% off, while sales volume increases were largely eroded by currency translation effects in the first six months, according to the company.