Weaker refining margins underpin many profit falls in Third Quarter 2013.
BP has announced profits for the Third Quarter 2013 of $3.7bn, down $1bn on the previous Quarter. Operating cash flow was $6.3bn. The oil major's upstream business delivered profits of $4.4bn and was boosted by two significant exploration discoveries in Egypt and India. Downstream profits of $0.7bn remained steady but were hit by reduced refining margins. Group CEO, Bob Dudley, claimed the company was on track to meet its 2014 cashflow targets.
In contrast, ConocoPhillips showed improved earnings of $2.5bn, up $0.7bn year-on-year. The company's Third Quarter 2013 adjusted earnings were $1.8bn, slightly raised on the previous year. Despite two months of disruptions in Libya, the company is hoping to see 3% to 5% growth in volumes and margins.
French oil major, Total, claimed to have been affected by falling European oil demand after announcing a 19% drop in net adjusted profits for the Quarter to €2.7bn ($3.72bn) compared to the same quarter a year ago. A $400 million rise in Total's exploration bill has also adversely affected profits.
Poorer refining margins were stated as the reason behind Phillips 66's fall in earnings this quarter, down from $1.6bn in the same period last year to $535m this year.
Another victim of weaker refining margins is ExxonMobil which revealed Third Quarer profits of $7.87bn, compared with $9.57bn a year earlier. Exxon's refining unit made a profit of just $592m in the latest quarter, significantly down on the $3.2bn figure i 2012.
Despite gains from higher commodity prices and output from wells, Chevron is also facing a downturn in net income due to poorer margins at $4.95bn, compared with $5.25bn a year earlier.
However, as has often been the case in recent years, lubricants giant Fuchs bucked the trend with reported EBIT up 5.8% to €83.4m ($112.7m) in the Third Quarter. Sales were little changed at €468.7m and net income increased 5.7% to €57.9m.