Oil majors such as Energy majors Exxon Mobil and Shell have revised their financial projections for the fourth-quarter of 2024.
Exxon Mobil
Exxon Mobil anticipates a $1.75 billion reduction in fourth-quarter earnings due to weaker oil refining profits and broad business challenges, despite $400 million gains from upstream asset sales, offset by $600 million in impairments. Refining margins are projected to cut earnings by $300-$700 million, with additional timing effects reducing profits by $500-$900 million.
Declines in oil prices and lagging fuel demand contributed to the downturn, although higher U.S. natural gas prices partially mitigated losses. Exxon’s chemical division earnings are expected to drop by $400 million compared to the prior quarter, with final results to be released on Jan. 31.
Shell
Shell has adjusted its LNG production forecast to 6.8-7.2 million metric tons, citing reduced feedgas deliveries and fewer cargo shipments. It expects significantly lower trading results in oil, gas, and chemicals due to weaker seasonal demand and the expiration of hedging contracts from 2022.
Impairments between $1.5-$3 billion, including up to $1.2 billion in renewables, are anticipated following a strategic shift to focus on profitable ventures. Despite weakness across divisions, analysts expect no immediate impact on shareholder returns, with full-year results due Jan. 30.
Baburajan Kizhakedath