Global oil and petchem companies report healthier results for Q1 2024 after turbulent 2023
by Elif Şahinduran - esahinduran@chemorbis.com
by Esra Ersöz - eersoz@chemorbis.com 
2022 was a period of record-highs for many oil, gas, and petrochemical companies. In 2023, as economic headwinds increased, energy and petrochemical giants saw their profits slump while others even swung to a net loss. Following the turbulent year, companies started to announce improved financial results for Q1 2024.
Although yearly comparisons still suggested a decline, quarter-on-quarter comparisons showed healthier results on the back of improved demand and recent logistic disruptions.
Oil and gas majors report better-than-expected earnings
ExxonMobil, the number one oil producer in the US, reported earnings of $8.2 billion in the first quarter. The figure was up from the last quarter of 2023; however, down from $11.4 billion in the same quarter of 2023.
Oil and gas majors Shell and Chevron also announced stronger results in Q1. Just like ExxonMobil, Chevron, the second largest US oil producer, announced adjusted earnings of $5.5 billion for Q1 2024, a 12% increase from the previous quarter, smashing expectations, although it was down 16% from the same quarter last year.
British oil giant Shell reported adjusted earnings of $7.7 billion for the first quarter, up from $7.3 billion reported in the previous quarter. Q1 was the fourth quarter in a row the company announced expansion in profits.
Saudi Arabia’s state-owned oil giant and the world’s largest integrated oil and gas company, Aramco, reported a net income of $27.3 billion in the first quarter of 2024, which declined by 12% from $31.9 billion in the same period last year. Meanwhile, the company’s net profit increased from $22 billion in Q4 2023.
Q1 profits of Total, BP and Eni fail to show improvement
French energy company TotalEnergies’ adjusted net income declined by 22% to $5.1 billion from $6.5 billion in the same quarter of the previous year and by 2% from the previous quarter, the company reported in a press release. Although the figure was down both on a yearly and quarterly basis, it was slightly up from analysts’ expectations of $5 billion.
Italian energy company Eni announced an adjusted net profit of 1.58 billion euros ($1.68 billion) in the first quarter of 2024, down from 2.91 billion euros ($3.1 billion) in Q1 2023. The company’s net profit also declined from 1.64 billion euros ($1.76 billion) in the fourth quarter.
British energy giant BP reported a net profit of $2.7 billion for the first quarter of 2024, down by 40% from $5 billion in the same period of last year. The figure also declined from the $3 billion net profit announced in the previous quarter.
Asian producers saw mixed results
Chinese and Indian producers continue to show robust performance
PetroChina reported a net income of 45.68 billion yuan ($6.3 billion) in the first quarter of 2024, up by 4.7% from 43.6 billion yuan ($6 billion) reported in the same period last year.
China’s Sinopec Corp. net profit declined by 8.9% year-over-year to 18.32 billion yuan ($2.53 billion) in the first quarter of 2024. The company attributed the fall in quarterly profits to rising raw materials costs and heating competition that hurt its petrochemical business, counterbalancing the positive impacts from higher fuel sales and oil prices.
India’s Reliance Industries’ (RIL) gross revenue came in at ₹264,834 crore ($31.8 billion), up nearly by 11% year over year. The strong result was attributed to a notable growth in O2C (order to cash) and consumer business.
Thailand-based petrochemical producer Indorama reported consolidated revenue of $3.8 billion in the first quarter of 2024, up by 6% from the previous quarter’s $3.6 billion. Meanwhile, consolidated revenue declined by 5% from the same quarter last year.
Thailand’s Siam Cement Group (SCG) posted a net profit of 2.42 billion baht ($65 million) in the first quarter of 2024. The figure slumped by 85% from 16.52 billion baht ($448 million) reported in the same quarter previous year.
South Korean petrochemicals company LG Chem reported a net profit of 341.69 billion won ($248 million), down by 49% from 669.05 billion won ($493 million) in the same quarter previous year. The company attributed the lower results to higher raw material costs and lower demand due to the economic slowdown.
Chandra Asri and Lotte Chemical see net loss narrow in Q1
Meanwhile, Indonesia’s Chandra Asri and Malaysia’s Lotte Chemical Titan reported operating losses for the quarter.
Chandra Asri Group reported a loss of $32 million after tax in Q1 while Lotte Chemical Titan reported RM178 million ($37 million) net loss for Q1. The company’s financial results were at the negative territory. However, it narrowed from a net loss of RM224.7mil ($47 million) posted in the same quarter last year.
Likewise, South Korea’s Lotte Chemical registered an operating loss of 60 billion won ($43.7 million) for the first quarter. This loss was a sharp contrast to 225 billion won profit reported in Q1 2023, but it narrowed from 154 billion won loss in the previous quarter.
Saudi producers turn to net profit in Q1
Saudi Basic Industries Corp (SABIC) returned to net profit in Q1. The company registered a net profit of 250 million riyals ($66.66 million) in the first quarter of 2024, down by 62% compared to 660 million riyals ($176 million) profit reported during the same period of last year. Despite the yearly slump, the company returned to profit following a net loss of SAR1.7 billion ($453 million) in the fourth quarter of 2023.
Yanbu National Petrochemical Company (Yansab) also pivoted to net profit of 99.50 million riyals ($26 million) in the first quarter of 2024 compared to net loss of 369.70 million riyals ($98 million) in Q1 2023. The company cited higher production and increased sales volume as the drivers behind the strong results.
Yansab’s net profit skyrocketed in the first quarter of the year, more than five-folding from the 18.50 million riyals ($5 million) profit reported in the last quarter.
Saudi Advanced Industries’ net profit was 108.72 million riyals ($29 million) in the first quarter, almost five-folding from last year, mainly due to gains in financial assets despite higher costs. The company closed last year with a net loss.
Sahara International Petrochemical Co. (Sipchem) announced that its net profit declined by 61% in the first quarter of 2024 to 181.5 million riyals ($48.39 million) in Q1 2024, compared to 470.3 million riyals ($125 million) in Q1 2023. The company’s net profit rose by 14% from 158.7 million riyals in Q4 2023.
Producers in Americas announce improved quarterly results
LyondellBasell’s net income for the first quarter of 2024 was $473 million or $1.44 per diluted share. The figure suggested an increase from the fourth quarter’s $185 million, while it slightly declined from $474 million announced in the same period last year. Trinseo reported a net loss of $76 million in the first quarter, which narrowed from the $265 million loss reported in Q4 2023. This was the second quarter in a row the company announced a smaller loss, although Q1 2024 loss was still larger than the $49 million loss announced in the same period last year.
Occidental Petroleum (Oxy) announced adjusted net income of $604 million for the first quarter of 2024. The figure declined from $1 billion reported in Q1 2023.
Dow, Westlake pivoted to net profits from losses
Dow turned to a net income of $538 million for the first quarter of 2024 from $73 million loss in the same period last year. The company also registered a net loss of $95 million for Q4 2023.
Westlake reported a net income of $174 million in the first quarter of 2024 following a net loss of $552 million in the previous quarter. The company reported a net profit of $536 million in the same quarter last year.
Orbia and Braskem reveal smaller losses
Mexico’s Orbia reported a net loss of $32 million. The company’s net revenues at $1.9 billion showed an 18% decrease compared to the first quarter of 2023, mainly due to lower purchasing volumes and prices. Net revenue was higher than $1.8 billion reported in the previous quarter.
Braskem, Brazilian petrochemical company, also recorded a net loss of $273 million in the first quarter of 2024, which narrowed from $317 million loss in the previous quarter. Meanwhile, the company reported a net income of $35 million in the same period of last year.
European producers registered healthier results from Q4 2023
BASF reported a net income of €1.4 billion in the first quarter of 2024, down by 12.4% from the €1.6 billion income announced in the same period last year. The company recorded a net loss of €1.5 billion in the fourth quarter of 2023.
INEOS Group’s EBITDA for the first quarter of 2024 was €260 million, down compared to €381 million reported in the same period last year but up from €149 million reported in the fourth quarter of 2023.
Belgian multinational chemical company Solvay’s underlying net profit from continuing operations was €119 million in the first quarter of this year, down from €187 million in Q1 2023. The figure increased from €34 million net profit in Q4 2023.
TotalEnergies’ refining and chemicals segment reported an adjusted net operating income of $962 million for the first quarter, up by 52% from Q4 2023 but down by 41% from the same period of the previous year.
Austrian integrated oil and gas company OMV’s chemicals and materials segment saw operating result increase by 37% to €129 million ($139 million) mainly on positive impact from inventory effects and better results from joint ventures.
Spain’s Repsol also registered net income of €969 million for the first quarter of 2024, down by 12.9% from same period last year.
Versalis, Eni’s chemicals subsidiary, reported an adjusted operating loss of 170 million euros ($182 million) in Q1 2024, driven by continuing macro headwinds and energy cost disadvantages of European plants vs. other areas.
Companies expect the positive momentum to continue in Q2
In the second quarter of 2024, higher-for-longer interest rates might hinder economic recovery, while excess capacity in the petrochemicals sector may further delay a meaningful recovery in demand.
Despite all the risks in place, most companies expect seasonal demand improvements in the remaining part of the year, which may uplift financial results for the period.
Although yearly comparisons still suggested a decline, quarter-on-quarter comparisons showed healthier results on the back of improved demand and recent logistic disruptions.
Oil and gas majors report better-than-expected earnings
ExxonMobil, the number one oil producer in the US, reported earnings of $8.2 billion in the first quarter. The figure was up from the last quarter of 2023; however, down from $11.4 billion in the same quarter of 2023.
Oil and gas majors Shell and Chevron also announced stronger results in Q1. Just like ExxonMobil, Chevron, the second largest US oil producer, announced adjusted earnings of $5.5 billion for Q1 2024, a 12% increase from the previous quarter, smashing expectations, although it was down 16% from the same quarter last year.
British oil giant Shell reported adjusted earnings of $7.7 billion for the first quarter, up from $7.3 billion reported in the previous quarter. Q1 was the fourth quarter in a row the company announced expansion in profits.
Saudi Arabia’s state-owned oil giant and the world’s largest integrated oil and gas company, Aramco, reported a net income of $27.3 billion in the first quarter of 2024, which declined by 12% from $31.9 billion in the same period last year. Meanwhile, the company’s net profit increased from $22 billion in Q4 2023.
Q1 profits of Total, BP and Eni fail to show improvement
French energy company TotalEnergies’ adjusted net income declined by 22% to $5.1 billion from $6.5 billion in the same quarter of the previous year and by 2% from the previous quarter, the company reported in a press release. Although the figure was down both on a yearly and quarterly basis, it was slightly up from analysts’ expectations of $5 billion.
Italian energy company Eni announced an adjusted net profit of 1.58 billion euros ($1.68 billion) in the first quarter of 2024, down from 2.91 billion euros ($3.1 billion) in Q1 2023. The company’s net profit also declined from 1.64 billion euros ($1.76 billion) in the fourth quarter.
British energy giant BP reported a net profit of $2.7 billion for the first quarter of 2024, down by 40% from $5 billion in the same period of last year. The figure also declined from the $3 billion net profit announced in the previous quarter.
Asian producers saw mixed results
Chinese and Indian producers continue to show robust performance
PetroChina reported a net income of 45.68 billion yuan ($6.3 billion) in the first quarter of 2024, up by 4.7% from 43.6 billion yuan ($6 billion) reported in the same period last year.
China’s Sinopec Corp. net profit declined by 8.9% year-over-year to 18.32 billion yuan ($2.53 billion) in the first quarter of 2024. The company attributed the fall in quarterly profits to rising raw materials costs and heating competition that hurt its petrochemical business, counterbalancing the positive impacts from higher fuel sales and oil prices.
India’s Reliance Industries’ (RIL) gross revenue came in at ₹264,834 crore ($31.8 billion), up nearly by 11% year over year. The strong result was attributed to a notable growth in O2C (order to cash) and consumer business.
Thailand-based petrochemical producer Indorama reported consolidated revenue of $3.8 billion in the first quarter of 2024, up by 6% from the previous quarter’s $3.6 billion. Meanwhile, consolidated revenue declined by 5% from the same quarter last year.
Thailand’s Siam Cement Group (SCG) posted a net profit of 2.42 billion baht ($65 million) in the first quarter of 2024. The figure slumped by 85% from 16.52 billion baht ($448 million) reported in the same quarter previous year.
South Korean petrochemicals company LG Chem reported a net profit of 341.69 billion won ($248 million), down by 49% from 669.05 billion won ($493 million) in the same quarter previous year. The company attributed the lower results to higher raw material costs and lower demand due to the economic slowdown.
Chandra Asri and Lotte Chemical see net loss narrow in Q1
Meanwhile, Indonesia’s Chandra Asri and Malaysia’s Lotte Chemical Titan reported operating losses for the quarter.
Chandra Asri Group reported a loss of $32 million after tax in Q1 while Lotte Chemical Titan reported RM178 million ($37 million) net loss for Q1. The company’s financial results were at the negative territory. However, it narrowed from a net loss of RM224.7mil ($47 million) posted in the same quarter last year.
Likewise, South Korea’s Lotte Chemical registered an operating loss of 60 billion won ($43.7 million) for the first quarter. This loss was a sharp contrast to 225 billion won profit reported in Q1 2023, but it narrowed from 154 billion won loss in the previous quarter.
Saudi producers turn to net profit in Q1
Saudi Basic Industries Corp (SABIC) returned to net profit in Q1. The company registered a net profit of 250 million riyals ($66.66 million) in the first quarter of 2024, down by 62% compared to 660 million riyals ($176 million) profit reported during the same period of last year. Despite the yearly slump, the company returned to profit following a net loss of SAR1.7 billion ($453 million) in the fourth quarter of 2023.
Yanbu National Petrochemical Company (Yansab) also pivoted to net profit of 99.50 million riyals ($26 million) in the first quarter of 2024 compared to net loss of 369.70 million riyals ($98 million) in Q1 2023. The company cited higher production and increased sales volume as the drivers behind the strong results.
Yansab’s net profit skyrocketed in the first quarter of the year, more than five-folding from the 18.50 million riyals ($5 million) profit reported in the last quarter.
Saudi Advanced Industries’ net profit was 108.72 million riyals ($29 million) in the first quarter, almost five-folding from last year, mainly due to gains in financial assets despite higher costs. The company closed last year with a net loss.
Sahara International Petrochemical Co. (Sipchem) announced that its net profit declined by 61% in the first quarter of 2024 to 181.5 million riyals ($48.39 million) in Q1 2024, compared to 470.3 million riyals ($125 million) in Q1 2023. The company’s net profit rose by 14% from 158.7 million riyals in Q4 2023.
Producers in Americas announce improved quarterly results
LyondellBasell’s net income for the first quarter of 2024 was $473 million or $1.44 per diluted share. The figure suggested an increase from the fourth quarter’s $185 million, while it slightly declined from $474 million announced in the same period last year. Trinseo reported a net loss of $76 million in the first quarter, which narrowed from the $265 million loss reported in Q4 2023. This was the second quarter in a row the company announced a smaller loss, although Q1 2024 loss was still larger than the $49 million loss announced in the same period last year.
Occidental Petroleum (Oxy) announced adjusted net income of $604 million for the first quarter of 2024. The figure declined from $1 billion reported in Q1 2023.
Dow, Westlake pivoted to net profits from losses
Dow turned to a net income of $538 million for the first quarter of 2024 from $73 million loss in the same period last year. The company also registered a net loss of $95 million for Q4 2023.
Westlake reported a net income of $174 million in the first quarter of 2024 following a net loss of $552 million in the previous quarter. The company reported a net profit of $536 million in the same quarter last year.
Orbia and Braskem reveal smaller losses
Mexico’s Orbia reported a net loss of $32 million. The company’s net revenues at $1.9 billion showed an 18% decrease compared to the first quarter of 2023, mainly due to lower purchasing volumes and prices. Net revenue was higher than $1.8 billion reported in the previous quarter.
Braskem, Brazilian petrochemical company, also recorded a net loss of $273 million in the first quarter of 2024, which narrowed from $317 million loss in the previous quarter. Meanwhile, the company reported a net income of $35 million in the same period of last year.
European producers registered healthier results from Q4 2023
BASF reported a net income of €1.4 billion in the first quarter of 2024, down by 12.4% from the €1.6 billion income announced in the same period last year. The company recorded a net loss of €1.5 billion in the fourth quarter of 2023.
INEOS Group’s EBITDA for the first quarter of 2024 was €260 million, down compared to €381 million reported in the same period last year but up from €149 million reported in the fourth quarter of 2023.
Belgian multinational chemical company Solvay’s underlying net profit from continuing operations was €119 million in the first quarter of this year, down from €187 million in Q1 2023. The figure increased from €34 million net profit in Q4 2023.
TotalEnergies’ refining and chemicals segment reported an adjusted net operating income of $962 million for the first quarter, up by 52% from Q4 2023 but down by 41% from the same period of the previous year.
Austrian integrated oil and gas company OMV’s chemicals and materials segment saw operating result increase by 37% to €129 million ($139 million) mainly on positive impact from inventory effects and better results from joint ventures.
Spain’s Repsol also registered net income of €969 million for the first quarter of 2024, down by 12.9% from same period last year.
Versalis, Eni’s chemicals subsidiary, reported an adjusted operating loss of 170 million euros ($182 million) in Q1 2024, driven by continuing macro headwinds and energy cost disadvantages of European plants vs. other areas.
Companies expect the positive momentum to continue in Q2
In the second quarter of 2024, higher-for-longer interest rates might hinder economic recovery, while excess capacity in the petrochemicals sector may further delay a meaningful recovery in demand.
Despite all the risks in place, most companies expect seasonal demand improvements in the remaining part of the year, which may uplift financial results for the period.
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