Wall Street

Huge Revenue in Exxon and Chevron but Below Expectations

Exxon and Chevron post strong revenues, but Wall Street ignores them in light of high oil prices

The two largest US oil companies posted giant revenues in the first quarter, but Wall Street analysts noted that ExxonMobil and Chevron failed to live up to expectations during the period when oil prices rose to $140 a barrel. Read more [Oil Prices Rise as Supply Restrictions Continue].

Exxon and Chevron earned $5.5 billion and $6.3 billion, respectively, and the former returned to its strategy of massive stock buybacks years ago by tripling its expected purchase campaigns to $30 billion by 2023. Chevron also rushed to boost its share buyback campaigns to Highest levels in a year. Read more [Record Profits Expected at ExxonMobil After Oil & Gas Surge].

However, this did not cancel the disappointment of Wall Street, which indicated that the levels of financial flows for the two companies and the losses from oil derivatives resulting from their business were unexpected, and analysts also stated that the charts published by Chevron were “the most disappointing” within the oil sector so far, prompting The shares of the two companies to collapse following the news, as Chevron shares lost 3% of its value and Exxon lost about 2.6%. Read more [Chevron Shares Fall After Posting Results During the 4Q].

Exxon’s revenue was about $1.3 billion less than it should have given its position in the oil derivatives market and timing problems, while Chevron’s global refining business has been hit by slim profit margins and foreign currency fluctuations, which has prompted it to turn to alternative, more sustainable sources. for income. Read more [Chevron Buys Renewable Energy for $3.15 Billion].

The Brent crude index traded at an average price of nearly $87 per barrel during the quarter, making it the most volatile quarter in more than 30 years, except for the mid-2020 period when prices plunged following the outbreak of the Covid epidemic, and both companies are facing increasing inflationary expenses and a shortage of labor in the states. United.

Related Articles

Back to top button