First nine months of 2021 show recovery for most oil majors.
Shell has reported a positive first nine months of 2021, with income in the black at $8.6bn folliwng a $17.6bn loss for the same period in 2020. However, adjusted earnings for Q3 this year were $4.1bn, $1.4bn lower than in the previous quarter.
Compared with the second quarter 2021, current quarter adjusted earnings reflected comparative adverse one-off tax impacts, lower production volumes (partly due to the impact of Hurricane Ida) and comparatively lower contributions from trading and optimisation. This was partly offset by higher oil, LNG and gas prices, according to the company.
BP's first nine-months of 2021 also saw a profit turn-around at $5.2bn compared to a loss of $21.6bn in the same period of 2020. As with Shell, the company reported a Q3 loss for of $2.5bn, compared with a $3.1bn profit for the previous quarter, primarily due to the exceptional increase in forward gas prices towards the end of Q3. Underlying replacement cost profit was $3.3bn, compared with Q2's $2.8bn.
Total also announced an uptick of 38% on the second quarter of 2021 with adjusted net income of $4.8bn. The first nine months of 2021 saw adjusted net income of $11.2bn, more than four times greater than the same period in 2020.
CEO Patrick Pouyanné said, "The global economic recovery, notably in Asia, drove all energy prices sharply higher in the third quarter due to the interconnection of energy systems ...oil prices gained 7%, continuing their steady year-long rise."
ExxonMobil saw its Q3 earnings rise to $6.75bn from a loss in the same period in 2020 of $680m. The first nine-months of the year saw earnings of $14bn, recovering from a $2.3bn loss in the same period in 2020.
“All three of our core businesses generated positive earnings during the quarter, with strong operations and cost control, as well as increased realizations and improved demand for fuels,” said Darren Woods, Chairman and CEO.
Despite what Stefan Fuchs, Chairman of Fuchs, describes as a "difficult market environment", the company has reported a 22% rise in nine-month sales revenues in 2021 posting figures of € 2,129m and an EBIT of € 279m. The automotive sector in the Asia-Pacific region, especially China, has been cited as a major contributor to the performance.
Chevron reported postive earnings of $6.1bn for third quarter 2021, compared with $207m loss in Q3 the previous year. Adjusted Q3 2021 earnings of $5.7bn compared favourably to adjusted earnings of $340m for the same period in 2020.
Finally, Phillips 66 announced improved third-quarter 2021 earnings of $402m, against $296m in the previous Quarter. Excluding special items of $1.0bn, primarily an impairment of the Alliance Refinery following Hurricane Ida, the company had adjusted Q3 earnings of $1.4bn against Q2's $329m. Greg Garland, Chairman and CEO described the third quarter as "a significant improvement in earnings and cash generation."