Q2 results widely revealed in oil and petchem industry
Exxonmobil’s net profit rose sharply from last year as the company slashed spending to compensate lower crude oil prices. The company’s quarterly net income surged by 97% to $3.35 billion from last year; however, it fell behind expectations. However, in Exxon’s chemicals business, earnings fell $232 million to $985 million as margins weakened.
Royal Dutch Shell extended its gains to the second quarter. The Anglo-Dutch oil giant’s quarterly net income based on a current cost-of-supplies and excluding exceptional items surged by 245% to $3.6 billion compared to the same period of last year on stronger results in chemicals and refining segments.
Chevron’s quarterly results also beat expectations as the company cut costs and refining margins as well as oil and gas prices improved. The company reported a second-quarter net income of $1.45 billion compared to a net loss of $1.47 billion in the year-ago quarter.
French oil giant Total’s second quarter net profit was steady at $2 billion on year. Nonetheless, the company’s debt levels continued to come down and cash flow from operations jumped 60%.
BP reported a modest profit of $553 million for the second quarter as the company’s financial performance continued to be dragged down by the 2010 Gulf of Mexico oil spill. The company had posted a profit of $1.5 billion in the first quarter of 2017 and $720 million in the second quarter of 2016.
In chemicals and petrochemicals industry, INEOS increased its EBITDA by 12% to €638 million ($743 million) on a yearly basis, although it was down by 15% from the previous quarter. The company attributed higher results to stronger market conditions in North America, Europe and Asia. Stronger demand for olefins and polymers particularly in Europe contributed to the yearly gain in profits.
US-based Dow Chemical’s operating EBITDA also rose 12% to $2.8 billion when compared to the same period of last year. The company improved its financial results thanks to higher prices, stronger demand and through launching new products.
However, Saudi Basic Industries Corp.’s (SABIC) net profit declined by 25% to 3.71 billion riyals ($989.3 million) in the second quarter of this year compared to the same period of last year. The company blamed higher selling costs and lower sales from its iron and steel unit.
Borealis’s net profit also fell 16% in Q2 on the year to €261 million ($305.9 million) on year, although the company’s first half net profit reached a record high at €574 million ($673.9 million), supported by the increased profit contribution from Borouge.
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