The pandemic marks the lowest earnings period for Exxon Mobil and Chevron as they release their quarterly results on Friday because declining oil and gas prices reduce the profitability of major industry players.
Exxon Mobil will report adjusted earnings of $6.67 billion during the second quarter which equals $1.56 per share according to analyst projections while this represents a 27% decrease from the previous year. The forecast shows Chevron will achieve its lowest quarterly earnings since 2021 with adjusted income reaching $3 billion.
The April-June period saw crude and natural gas prices experience significant declines because OPEC+ increased production while President Trump’s changing trade policies created economic uncertainty. The price of Brent crude oil decreased by 11% while U.S. natural gas futures prices dropped by 9%.
Exxon announced previously that lower prices would reduce its quarterly earnings by $1.5 billion from the previous period. The refining business will provide some protection to the company but it represents a limited portion of total profits.
The acquisition of Hess by Chevron became final this month and the company expects to achieve $1 billion in cost synergies before the end of the year. The production levels will decrease marginally because of a Colorado well accident and an Israeli facility shutdown.
The companies rely on their major projects such as Exxon’s Guyana expansion to generate future profits despite ongoing energy market volatility.
