Oil results second quarter 2018


BP sees profit quadruple in a highly positive Q2 2018.

Oil major BP has reported a $2.8bn underlying replacement cost (RC) profit, four times that reported for the same period in 2017.  This includes significantly higher earnings from upstream activites and Russian oil producer, Rosneft.

For the half year, BP's RC profits were $5.4bn, compared with $2.2bn in 2017. Group Chief Executive Bob Dudley stated that, in the light of the strength of BP's "financial frame", it is increasing its dividend for the first time in almost four years.

Also following the upward trend was Shell, with a 135% increase on half year income since the same period last year - $11.9bn up from $5bn. The quarterly figure of $6bn shows an astonishing rise of 290% on Q2 2017's figure of $1.5bn.

Royal Dutch Shell Chief Executive Officer Ben van Beurden commented: “Today we are taking another important step towards the delivery of our world-class investment case, with the launch of a $25bn share buyback programme."

For French major, Total, a rise in oil prices contributed to the $3.6bn adjusted net income and helping to generate $6.8bn of cash flow in Q2 2018, representing an increase of 20% compared to the first quarter. The first half of 2018 saw net income rise to $6.4bn, up 28% on the same period last year.

Positive, though smaller first half gains were reported on sales revenues by Fuchs, showing a 5% increase from €1.25 bn to €1.3bn. Earnings before interest and tax (EBIT) rose 2% in the same period. Over the course of the year, negative currency effects caused by the strong Euro were less significant, but still had a -5% impact.

ExxonMobil also reported more modest increases in earnings - $3.9bn in Q2 2018, compared to $3.35bn in the same period last year.  The half year figures showed a 17% uplift from $7.36bn in 2017 to $8.6bn in 2018.  The company stated that growth in higher-value sales of retail fuels in the U.S., Belgium, the Netherlands and Luxembourg, combined with record quarterly sales of Mobil 1 lubricants in the U.S. and China, helped boost second quarter earnings.

There was good news for Chevron as well, with reported earnings of $3.4bn for second quarter 2018, compared with $1.5bn in the second quarter of 2017. Included in the current quarter was a receivable write-down of $270m charged to operating expense.

“Second quarter earnings were up significantly from a year ago,” said Chairman and CEO Michael Wirth. “Results in 2018 benefited from higher crude oil prices, strong operations and higher production.”

ConocoPhillips reported second-quarter 2018 earnings of $1.6bn in the black, compared with a second-quarter 2017 loss of $3.4bn. Ryan Lance, Chairman and CEO, said the company was "benefitting from higher oil prices, but also driving underlying cash flow expansion." Special items for the current quarter included an unrealized gain on Cenovus Energy equity and recognition of deferred licensing revenue, partially offset by pension settlement expense.

Phillips 66 announced Q2 2018 earnings of $1.3bn, compared with $524m in Q1 2018. Excluding special items of $17m in the second quarter, adjusted earnings were $1.3bn, compared with first-quarter adjusted earnings of $512m .