Exxon Mobil Corporation (NYSE: XOM) and Chevron Corporation (NYSE: CVX) came out with their quarterly results late last week. Both companies posted a sharp decline in their second-quarter earnings as weaker refining results had a significant impact on the bottom-line.
Major integrated oil companies had seen a revival of their refinery businesses in the last few quarters as lower U.S. crude oil prices,
thanks to the shale revolution, boosted margins. However, with the spread between U.S. crude and Brent crude in London narrowing in the second quarter, margins at U.S. refiners have come under pressure. At Chevron, refining and marketing earnings fell 83%. Apart from higher U.S. crude oil prices, Chevron’s refinery and marketing earnings were negatively impacted by a sharp drop in refinery crude input due to the fire at the company’s Richmond, California plant in August last year.
The plant started in April this year. Meanwhile, Exxon also reported a drop in its refinery margins. The company’s output also dropped as refineries were undergoing maintenance. The narrowing of the spread between U.S. crude and Brent is expected to continue to hurt major integrated oil companies’ refining businesses. Therefore, one can expect the next few quarters to be challenging for Exxon and Chevron.
Original Post :- View to Original Post Click here
thanks to the shale revolution, boosted margins. However, with the spread between U.S. crude and Brent crude in London narrowing in the second quarter, margins at U.S. refiners have come under pressure. At Chevron, refining and marketing earnings fell 83%. Apart from higher U.S. crude oil prices, Chevron’s refinery and marketing earnings were negatively impacted by a sharp drop in refinery crude input due to the fire at the company’s Richmond, California plant in August last year.
The plant started in April this year. Meanwhile, Exxon also reported a drop in its refinery margins. The company’s output also dropped as refineries were undergoing maintenance. The narrowing of the spread between U.S. crude and Brent is expected to continue to hurt major integrated oil companies’ refining businesses. Therefore, one can expect the next few quarters to be challenging for Exxon and Chevron.
Original Post :- View to Original Post Click here
No comments:
Post a Comment