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Earnings for Big Oil backpedal as natural gas prices tumble
U.S. and European oil companies reported weaker first quarter results on Friday due to a sharp drop in natural gas prices compared with a year ago.
Results at oil and gas firms are still retreating from record levels in 2022 that were boosted by a surge in demand after the COVID-19 pandemic and then when prices spiked after Russia invaded Ukraine.
In the U.S., Exxon Mobil missed Wall Street earnings targets on fuel derivatives and Chevronbeat tempered expectations with better-than-expected U.S. oil production.
French oil major TotalEnergies also slightly beat analysts forecasts as good refining margins partially offset a steep drop in profits from natural gas.
“European gas prices declined by 35%, reflecting a mild winter and high storage levels,” said TotalEnergies Chief Financial Officer Jean-Pierre Sbraire.
Exxon’s profit fell 28%, Chevron decreased 16% and TotalEnergies was down 22% year-on-year, with the two U.S. oil majors also taking a toll from weaker profits from gasoline and fuels.
Henry Hub futures, the benchmark for U.S. gas, has been trading below USD1.70 per million British thermal unit (mmBtu), and earlier this year dropped to a 3-1/2-year low on warm weather and oversupply
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