HOUSTON (Reuters) – U.S. oil and gas companies Chevron and Exxon Mobil saw their first-quarter results hit by a sharp drop in natural gas prices after a warmer-than-usual winter in the northern hemisphere reduced demand and drives up stocks.
Exxon Mobil missed analysts’ estimates with a 28% year-over-year decline in first-quarter profit as lower refining margins and natural gas prices offset volume gains.
On Wall Street, Exxon Mobil shares fell 3.08% to $117.59 at 1:41 p.m. GMT. Chevron shares only fell 0.74% at the same time.
In France, TotalEnergies also published declining results on Friday for the first quarter of 2024, marked by the drop in gas prices.
Exxon Mobil’s profit from oil and gas production fell 14% due to lower natural gas prices and refining fell 67% due to falling fuel margins.
Conversely, the major Chevron beat first quarter profit estimates on Friday, as increased production volumes in the United States helped offset the impact of weak natural gas prices and margins on revenues. fuels.
Profit from oil and gas exploitation amounted to $5.24 billion, compared to $5.16 billion in the same period of the previous year. In contrast, profit from gasoline and chemical production fell sharply, from $1.8 billion a year ago to $783 million.
Chevron and Exxon Mobil are hurt by low energy prices and fuel margins that cooled last year. A glut of natural gas and a warmer-than-expected winter caused natural gas prices to fall, impacting profits.
Results from the oil and gas business were nevertheless boosted by lower costs and higher volumes at Exxon’s operations in Guyana, where the last production vessel reached full production ahead of schedule. Hess, one of Exxon’s partners in the South American country, had already reported this increase with a 70% year-on-year production gain.
Exxon is in a dispute with Chevron and Hess over assets in Guyana, where the largest oil deposits of the past two decades have been discovered. Faced with Chevron’s takeover offer of Hess for $53 billion, Exxon claimed pre-emptive rights over Hess’ assets in Guyana. This request is currently being examined by an international arbitration panel.
(Reporting Sabrina Valle, Mrinalika Roy; Alban Kacher)
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