Although the world`s largest oil and gas companies are still making massive profits, their earnings have significantly dropped since 2022 highs. Lower oil prices and a sharp decline in gas demand have caused the largest players in this market to lose tens of billions of dollars in profit last year.
According to data presented by AltIndex.com, Exxon Mobil, Shell, Total Energies, and Chevron have cashed in $107.5 billion in 2023, almost 30% less than the year before.
Combined Earnings Plunged by $43 Billion, Chevron Saw the Biggest Drop
Although the world`s largest oil and gas giants cashed in tens of billions of dollars last year, their net income was $43 billion lower than in 2022.
According to Statista and the official company data, the US-owned ExxonMobil saw a massive 35% drop in annual net income. Last year, the company earned $36 billion, down from the $55.7 billion reported in 2022. Another US oil giant, Chevron, saw even bigger earnings drop. The company`s official data show Chevron`s net profit plunged by almost 40% year-over-year, falling from $35.5 billion in 2022 to $21.4 billion last year.
The British oil and gas giant Shell also suffered a double-digit earnings drop, with its net income falling by 29% year-over-year. Between January and December, the company cashed in $28.3 billion, down from $39.9 billion a year before that.
Statistics show French Total Energies is the only company on this list with better full-year results than in 2022. After exiting its stake in the state-controlled Russian oil and gas company Rosneft last year, BP suffered a $25bn worth financial hit and ended H1 2022 with a net loss of -$10.5$. However, the company recovered since then and ended H1 2023 with $10.3bn in net profit. This figure climbed to $21.4 billion by the end of the year, showing a 4% increase compared to 2022 earnings.
Statistics show the combined net income of the four oil and gas giants hit $107.5 billion in 2023, down from $151.5 billion a year before.
Almost $70 Billion Lost in Stock Value
Double-digit earnings drops have significantly impacted the stock values of the four companies. Statistics show the combined market cap of Exxon Mobile, Shell, Total Energies, and Chevron plunged by almost $70 billion, falling from $1.12 trillion in last February to $1.05 trillion last week.
Exxon Mobile saw the biggest stock value drop in this period, losing close to $37 billion year-over-year. Last week, the market cap of the US oil and gas giant stood at $414 billion, down from $450.8 billion in the same month a year ago. Statistics show Chevron saw the second-largest drop of $23.1 billion, with its stock value falling from $309 billion to $285.9 billion year-over-year.
Shell and Total Energies ended the year with much smaller losses, with their market caps falling by $5.6 billion and $3.8 billion year-over-year, respectively.
The full story and statistics can be found here: https://altindex.com/news/oil-gas-profit-drop
