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Oil giants Chevron, Exxon and Phillips 66 face profit squeeze for Q1

Published 2024-04-23, 03:48 p/m
© Reuters.  Oil giants Chevron, Exxon and Phillips 66 face profit squeeze for Q1

Proactive Investors - Major oil producers Chevron Corporation (NYSE:CVX, ETR:CHV), Exxon Mobil Corp (NYSE:NYSE:XOM, ETR:XONA) and Phillips 66 (NYSE:NYSE:PSX) will hand down their financial reports for the first quarter on Friday, April 26 before the stock market opens in New York.

Investor sentiment around energy stocks is positive heading into the reports, with geopolitical tensions in the Middle East driving the oil price above $80 per barrel.

Chevron shares are up almost 8% in the year-to-date, with Exxon and Phillips 66 (NYSE:PSX) both seeing an almost 18% gain.

However, these companies continue to face tough comparisons for Q1, particularly for net income, with profits falling back after oil prices spiked in 2022 following the Russian invasion of Ukraine.

Chevron is expected to post a 20% year-over-year drop in its first quarter earnings per share from $3.55 to $2.84.

Revenue is expected to decline from $50.8 billion to $50 billion.

Exxon is seen reporting EPS 22.6% lower than the year-ago quarter at $2.19 and flat revenue at $86.6 billion.

In a regulatory filing, the company signalled that its Q1 results would be weaker than the year-ago quarter due to lower oil and natural gas prices and a significant loss in fuel derivatives.

Phillips 66 is expected to see a significant drop in its profits, with analysts projecting an almost 50% decline in EPS from $4.21 for the same period in 2023 to $2.16.

Revenue is expected to decline more than 10% from $35 billion to $31 billion.

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