Oil Majors Q1 2020 Earnings

Driven by the negative impact of COVID-19 pandemic and the oil price collapse, almost all of the Oil Majors reported lower earnings for Q1 2020 compared to earnings reported a year ago. Here is an overview of Oil Majors earnings for Q1 2020:

ExxonMobil

• ExxonMobil reported quarterly loss of $610 million for the first time since 1999.
• The company is reducing 2020 Capex 30% to ~$23 billion, and
• Reducing 2020 cash Opex by 15%
  • Suspended discretionary activities
  • Capturing market savings and lower costs
• ExxonMobil’s capital allocation priorities remain unchanged.

Chevron

• Chevron reported first quarter 2020 earnings of $3.6 billion, an increase in earning for Q1 2020 compared to Q1 2019.
• Chevron is further reducing its 2020 capital expenditure guidance by up to $2 billion to as low as $14 billion.
• Chevron to suspend share repurchase program and protect the dividends.
• Rigs down ~60% to 20 in 2Q.
• ~200-300 MBOED curtailed in May.

Shell

• Shell reported earnings for Q1 2020 of $2.9 Billion. Q1 2020 earning was down by 45% compared to Q1 2019’s earning of $5.3 Billion.
• Shell is implementing its first ever quarterly dividends cuts since the 1940s. The company cut quarterly dividends by 65%, from $0.47 per share to $0.16 per share.
• Suspended share buybacks programme
• Reduction of $5 billion cash capital expenditure
• Reduction in underlying operating costs by $3-4 billion per annum

BP

• Reported $0.8 billion profits for Q1 2020, a decrease in profit compared to $2.4 billion reported in Q1 2019, and $2.6 billion in the fourth quarter of 2019.
• BP has reduced its group capital expenditure guidance for 2020 to around $12 billion – a decrease of around 25%.