Quarterly Earnings NEWS

Santos Ltd paid out a weaker than expected half-year dividend amid uncertainty over recovery from the COVID-19 pandemic. Underlying profit slumped to $212 million for the six months to June 30 from $411 million a year earlier. Including $526 million in asset impairments due to weaker long term oil price assumptions, Santos had a first-half net loss of $289 million.

Oilfield services firm, Petrofac reported revenues of $2.1bn in the first half, 25.5% below the same period last year. The earnings report reflects project delays caused by COVID-19 and lower oil & gas prices. The underlying profits after tax fell 86.4% to $21m, despite Petrofac's significant cost savings efforts during the year. The total order book shrunk from $7.4bn at the start of the year to $6.2bn towards the end of first half.

Aramco reported a 73.4% fall in second-quarter net profit, a steeper drop than analysts had forecast, and it expected capital expenditure for 2020 to be at the lower end of a $25 billion to $30 billion range. But the company is sticking with the plan to pay $75 billion in dividends this year. Net profit fell to 24.6 billion riyals for the quarter to June 30 from 92.6 billion riyals a year earlier.

Hindustan Petroleum Corp’s increased profit by 157% to Rs 2,252 crore in the April-June quarter capitalizing on inventory gains and increased marketing margins. The gross refining margin for the quarter was $.04 per barrel compared to $0.75 in the year-ago quarter. Crude prices have more than doubled to $45 a barrel since late April. Product prices too have similarly risen.

Adani Gas Ltd, on Wednesday reported a 42 per cent drop in June quarter net profit as sales volumes got impacted because of the coronavirus lockdown. Net profit of Rs 46 crore in April-June compared with Rs 79 crore net profit a year back. Revenue fell 57 per cent to Rs 207 crore while EBITDA was down 41 per cent at Rs 86 crore.

Marathon Oil Corp posted a smaller-than-expected loss on Wednesday as it reined in costs to cushion the impact from the COVID-19 pandemic. It cut its cost and expenses by 17.2% to $975 million as the average realized price for its U.S. crude oil and condensate fell 63.4% to $21.65 per barrel. Marathon’s total net production for the quarter fell to 390,000 boepd from 435,000 boepd a year ago.

U.S. oil refiner Marathon Petroleum Corp posted a smaller-than-expected quarterly loss on Monday. The demand recovery helped Marathon post a smaller adjusted loss of $868 million, or $1.33 per share, for the second quarter, compared with analysts’ estimate of a $1.75 loss. Investors had been worried about the refiner’s large debt due over the next five years. About half of the company’s $32 billion in total debt is outstanding through 2025.

The second-largest US oil company, Chevron expects $10 billion-$11 billion charge in the fourth quarter. Following this, the company is also planning to sell some of its natural gas projects to prepare for long term low prices. "With capital discipline and a conservative outlook comes the responsibility to make the tough choices necessary to deliver higher cash returns to our shareholders over the long term", said the Chief Executive.

Indian state-run oil major, ONGC registered a 4% drop in net profit at Rs 5,904 crore for 1Q2019, stressed by lower crude oil production and realization. The oil major’s total crude oil production for the quarter grossed at 5.86 Million Tonne (MT), declining 5.6% from 6.21 MT posted in the same quarter last year. ONGC made four discoveries in the April-June 2019 period.

India’s state-run refiner, BPCL registered a 41.48% plunge in profits for the first quarter. BPCL collected Rs 1,799.59 crore in profits, slipping from Rs 3,075.06 crore in the corresponding quarter last year. The oil guzzler’s income dipped 4.01% from Rs 83,605.07 crore to Rs 86,956.29 crore. Ebitda was Rs 2,981.9 crore against Rs 4,598 crore last year.

Oil India Limited recorded an 11% dip in first quarter profits, slipping over lower international crude prices and slump in production. The oil major’s net profit totaled to ₹625 crore, declining from ₹703 crore in the corresponding quarter last fiscal. In a statement, OIL informed that crude oil production for the quarter is 0.813 MMT which is 3.67% lower than Q1 FY 2018-19.

Supermajor Chevron, yesterday, registered a 26.3% hike in profits for the second quarter that ended June 30th. Chevron’s net income from the quarter jumped to $4.31 billion, from $3.41 billion a year earlier. Chevron benefitted from a $1 billion breakup fee received from Anadarko Petroleum. The termination fee brought in additional $720 million to the Chevron’s profit.

Supermajor Exxon Mobil yesterday recorded a 21% dip in profits for the second quarter of 2019, as weaker refining and chemicals business outweighed higher oil production. Exxon’s net income in the quarter fell to $3.13 billion, from $3.95 billion in the corresponding quarter last year. Exxon’s silver lining came from oil and gas production which rose 7% to 3.9 million barrels per day.

Brazilian state-run, Petrobras recorded its highest-ever quarterly profits yesterday. The state-run behemoth registered 18.87 billion reais ($4.92 billion) in profits, easily beating analysts’ estimates. Petrobras’ largest share of profit came from asset sales. The firm cashed in about $12.764 billion from asset sales, which also includes $8.722 billion from gas pipelines sale to France’s Engie SA in the quarter.

Occidental Petroleum Corp saw a 14% dip in core profit for the second quarter. Occidental, which recently acquired Anadarko in a $38 billion deal, reported $729 million in core income for the second quarter, dropping from $848 million in the corresponding quarter last year. Lower income for Occidental has been attributed to the offset of higher oil prices by adjustments to derivatives contracts and poorer natural gas prices.

Apache Corp released second-quarter earnings yesterday, registering a 78.6% dip in the adjusted profits. Apache’s revenue was hit by low prices of oil, gas and natural gas liquids (NGL) and high operating costs. The firm recorded $41 million in adjusted earnings, falling down from $192 million a year earlier. Quarterly earnings report also showed a 23.5% rise in Apache’s total operating expenses to $1.76 billion.

India's downstream giant, IOCL has reported a 50% decline in profit for the first quarter which ended in June. The consolidated net profit of the company went down to Rs 3,624 crore due to lower refinery margins and product sales. Revenue from operations went up a little to 0.44% and were at Rs 1,52,496 crore. Also, the expenses of the company increased in this quarter to Rs 1,47,953 crore.

Canadian oil and gas producer Encana Corp has reported profit in its quarterly report. The net income of the company rose to $336 million in the second quarter compared to the loss of $151 million in the corresponding quarter last year. Encana's profit increased with the boost in production this year. Total rise in production was about 11% to 591,800 barrels of oil equivalent per day (boe/d) in the quarter.