Dramatically lower oil prices continue to hit majors.
BP has reported underlying replacement cost profit for 2015 of $5.9bn, compared with $12.1bn reported for 2014 - a 51% slump and some of the the worst numbers in the company's history. The underlying result for the fourth quarter was $196m compared with $2.2bn year-on-year. Despite stronger results from the company's downstream segment, upstream pre-tax losses were significant for the quarter.
Although it has completed the $10bn divestment programme announced in October 2013, BP is still feeling the effects of the Deepwater Horizon disaster, according to CEO Bob Dudley. This, combined with the global oil price slump led the company to announce the need to shed 4000 upstream and 3000 downstream jobs and a further $3-5bn in divestments during 2016.
ExxonMobil fared little better, with a 58% drop in earnings in the fourth quarter 2015 compared with the 2014 period - down from $6.6bn to $2.8bn. Estimated earnings for the year were $16.2bn against $32.5bn.
US Upstream income turned from a $2bn profit in Q4 2014 to a loss of $538m for the same period last year, with non-US Upstream earnings at $1.4bn, down $2.6bn from 2014.
Shell also reported Q4 2015 earnings down spectacularly from $4.2bn to $1.8bn in a year. Full year 2015 CCS earnings were $3.8bn compared with $19.0bn in 2014. Like all the majors, the figures were impacted by the significant decline in oil and gas prices, partly offset by lower costs. Ben van Beurden, CEO of Shell said the company significantly curtailed spending by reducing the number of new investment decisions and designing lower-cost development solutions during 2015.
Phillips 66 reported fourth-quarter 2015 earnings of $650m, a steep decline from the $1.58bn in the third quarter, mainly due to lower realized refining margins. Its adjusted earnings, excluding special items of $60m, were $710m. The company’s midstream fourth-quarter adjusted earnings were $42m, down by $49m from the third quarter.
Greg Garland, Chairman and CEO took what few positives he could from the numbers, stating that the company's financial performance in 2015 demonstrated "the resiliency of our diversified portfolio in a low commodity price environment."
Chevron continued the gloomy reporting period with a Q4 loss of $588m, down from 2014 earnings of $3.5bn. Unsurprisingly, the news was described by Chairman and CEO John Watson as a reflection of the nearly 50% drop in crude oil prices. Full-year 2015 earnings were $4.6bn compared with $19.2bn in 2014. Sales and other operating revenues in fourth quarter 2015 were $28bn, compared to $42bn in the year-ago period.