Exxon Mobil, Chevron Shares Decline Despite Reporting Quarterly Profits

Summary

• Exxon Mobil posted a profit of US$2.73 billion after recording loss in four consecutive quarters.
• Chevron, which reported loss in the last three quarters, saw a profit of US$1.38 billion this quarter.
• Exxon Mobil’s shares are down around 2 percent while Chevron’s stock is down around 3 percent.

Shares of oil and gas majors Exxon Mobil Corporation (NYSE: XOM) and Chevron Corporation (NYSE: CVX) fell on April 30 after both the companies reported profit in their first quarter of 2021.

Exxon Mobil had been reporting loss in the last four consecutive quarters while Chevron recorded loss in the last three quarters following the impact of consumption after the coronavirus outbreak. The oil price had also plunged to a historic low in 2020.

CEOs of both the U.S.-based companies attributed the recovery in this quarter to the benefits of higher oil prices amid the economic recovery.

Exxon Mobil shares fell around 2.25 percent and Chevron’s stock dropped over 3.3 percent on Friday after noon. The shares for both the companies had plummeted in 2020 and are now on a recovery path.

Exxon Mobil

The Texas-based company posted a profit of US$2.73 billion in the first quarter, compared with a loss of US$610 million in the year-ago period. EPS jumped to 64 cents from 14 cents.

Source: Refinitiv, Exxon Mobil's quarterly net income from 2019.

Exxon Mobil’s oil-equivalent production grew 3 percent during the quarter to 3.8 million barrels per day compared with the first quarter of 2020.

Total revenue totaled US$59.15 billion, up from US$56.16 billion in the year-ago period. The company reduced total costs during the quarter to US$55.56 billion.

In addition, Exxon Mobil slashed its capital and exploration expenditures to US$3.13 billion from US$7.14 billion during the previous year quarter.

Meanwhile, the company has maintained its spending target for 2021 between US$16 and US$19 billion.

In 2020, Exxon Mobil lost US$22.44 billion.

READ MORE: Exxon Mobil Shifts Gears to Clean Technologies Amid Investors’ Pressure

Chevron

The California-based energy company reported a profit of US$1.38 billion, or 72 cents per share, for the first quarter of 2021 and raised its dividend by 4 percent.

The earnings figure is better compared to the loss of US$665 million in fourth quarter of 2020 but represents a decline from the profit of US$3.60 billion, or US$1.93 per share, in the year-ago quarter.

Net oil-equivalent production fell 4 percent year over year to 3.12 million barrels per day during the quarter.

Chevron’s total revenue increased to US$32.03 billion from US$31.50 billion in the first quarter previous year.

However, the total costs and other deductions during the quarter came in at US$29.85 billion, up from US$27.36 billion in in the year-ago period.

Capital expenditure in the first quarter reduced to US$2.50 from US$4.42 billion from the same quarter previous year.

In 2020, Chevron reported a loss of $5.5 billion.

Share Price on Recovery Mode

Shares of Exxon Mobil plunged around 41 percent in 2020 while Chevron’s stock fell around 30 percent.

However, rising oil prices and the hope of economic recovery have put the shares on recovery. Exxon Mobil shares are up 42 percent year to date. Chevron’s shares gained 30 percent year to date.