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Summary
- Exxon Mobil stock price gained over 40% this year.
- Royal Dutch Shell collected earnings of US$3.2 billion in Q1.
- Shell has set up a new arm to develop and market its carbon reduction technologies.
Oil and gas companies have ramped up their operations after the improvement in the economy.
Energy firms are expected to see increased demand as large industrial and infrastructural projects get underway in the US in the coming months.
Allied companies, such as equipment makers for drilling, etc., are also likely to gain from the reopening of the economy.
We explore here two energy firms to understand how they have performed in recent months in the midst of a pandemic and what their future may hold.
Exxon Mobil Corp. (NYSE:XOM)
Exxon is a leading energy company with a market cap of US$247billion. It has vast oil and gas fields and distribution networks across the globe.
The stock was priced at US$58.46 at 11.31 am ET on May 27, down 0.81% from the previous close. The stock gained more than 40% year-on-year.
The company netted earnings of US$2.7 billion in Q1. It’s net loss for the quarter was US$610 million. Its oil production rose by 3% to 3.8 million barrels per day during the period, up from the Q4 quarter.
It also generated 400MW electricity to power over 200,000 houses.
It has set up a new arm to develop and market its green technologies for carbon capture and storage underground. It is also exploring aerial technologies to detect methane emissions at the drilling sites.
Source: Pixabay.
Also read: Kinder Morgan, Energy Transfer & PAA: 3 Hot Pipeline Stocks
Royal Dutch Shell PLC (RDS/B)
Headquartered in the Netherlands, it is one of the world’s largest oil and gas companies. The stock was trading at US$36.62 at 11.37 am ET on May 27. It gained more than 6% since January.
It logged revenue of US$3.2 billion at the end of the first quarter, against US$2.9 billion in the year-ago quarter.
Also read: Why are the oil prices volatile in May?
The company raised its dividend by 4% in Q1. The net loss of Royal Dutch was US$200 million, contributed mainly by the cold storm early this year.
The company recently came under the radar of a Dutch court which asked Royal Dutch to cut emission by 45% from the 2019 levels by 2030.
