This past week, BP, Shell, ExxonMobil, Chevron and refiner Phillips 66 reported their second quarter 2016 financial results. BP and Chevron reported losses, while ExxonMobil reported earnings of $1.7 billion, although down 59 percent, compared with $4.2 billion a year earlier. Shell also reported a profit of $1.175 billion, down 72%.

BP reported last Tuesday that second-quarter earnings fell 45 percent to a loss of $1.42 billion BP posted underlying replacement cost profit of $720 million for the second quarter as an improvement in oil prices failed to compensate for weaker earnings from its refining business. BP’s lubricants business reported an underlying replacement cost profit before interest and tax of $412 million for the second quarter, up 3.8 percent from $397 million in 2015’s second quarter. BP's downstream business saw underlying profit before tax fall to $1.5 billion, down from $1.8 billion in the first quarter. BP's oil and gas production operations returned to a slim underlying profit before tax of $29 million for the quarter, up from a loss of $747 million in the first quarter. BP's total replacement cost loss for the second quarter was $2.25 billion, compared with a loss of $485 million in the first quarter, after it booked a post-tax charge of $2.8 billion to cover claims relating to the oil spill on its Deepwater Horizon rig in 2010. CEO Dudley says the oil company can draw a line under the Deepwater Horizon disaster and sees no further significant liabilities.

Royal Dutch Shell PLC last Thursday reported second-quarter profit of $1.175 billion, down 72% from $3.986 billion the same period in 2015. The company posted revenue of $58.42 billion in the period. Royal Dutch Shell’s second quarter 2016 CCS earnings attributable to shareholders were $0.239 billion compared with $3.361 billion for the same quarter a year ago. All of the company's major operations disappointed, though none so much as its upstream oil business, which posted a loss of $1.325 billion, down from a loss of 469 million the previous year's quarter. Shell's integrated gas unit posted earnings of $868 million, down from $1.403 billion, while downstream operations made $1.816 billion, down from $2.961 billion. Following the acquisition on February 15, 2016, BG Group plc has been consolidated within Royal Dutch Shell’s results.

Exxon Mobil Corporation last Friday announced estimated second quarter 2016 earnings of $1.7 billion, down 59 percent, compared with $4.2 billion a year earlier. The company stated the results reflect sharply lower commodity prices, weaker refining margins and continued strength in the Chemical segment. Revenue for the second quarter was $57.694 billion, down from $74.113 billion in the 2015 second quarter. During the second quarter, Upstream earnings were $294 million, down $1.7 billion. Production volumes were essentially unchanged at 4 million oil-equivalent barrels per day. Chemical earnings remained strong at $1.2 billion, reflecting continued benefits from gas and liquids cracking as well as growing product demand. Downstream earnings were $825 million, down $681 million from the second quarter of 2015. Weaker refining margins decreased earnings by $850 million while expenses partly offset by unfavorable foreign exchange effects. Petroleum product sales of 5.5 million barrels per day were 237,000 barrels per day lower than the prior year due in part to asset management activity. Earnings from the U.S. Downstream were $412 million, flat with the second quarter of 2015. Non-U.S. Downstream earnings of $413 million were $681 million lower than last year.

Chevron Corporation last Friday reported a loss of $1.5 billion for second quarter 2016, compared with earnings of $571 million in the second quarter of 2015. Included in the quarter were impairments and other non-cash charges totaling $2.8 billion, partially offset by gains on asset sales of $420 million. Foreign currency effects increased earnings in the 2016 second quarter by $279 million, compared with a decrease of $251 million a year earlier. Sales and other operating revenues in second quarter 2016 were $28 billion, compared to $37 billion in the year-ago period. U.S. upstream operations incurred a loss of $1.11 billion in second quarter 2016 compared with a loss of $1.04 billion from a year ago. International upstream operations incurred a loss of $1.35 billion in second quarter 2016 compared with a loss of $1.18 billion a year ago. U.S. downstream operations earned $537 million in second quarter 2016 compared with earnings of $731 million a year earlier. International downstream operations earned $ 741 million in second quarter 2016 compared with $2.23 billion a year earlier. Sales and other operating revenues in second quarter 2016 were $28 billion, compared to $37 billion in the year-ago period.

Refiner Phillips 66 last Friday announced second-quarter earnings of $496 million, compared with $385 million in the first quarter of 2016. Adjusted earnings were $499 million, an increase of $139 million from the last quarter. Refining's second-quarter earnings were $149 million, compared with $86 million in the first quarter of 2016. Marketing and Specialties (M&S) second-quarter earnings were $229 million, compared with $205 million in the first quarter of 2016. Chemicals' second-quarter earnings were $190 million, compared with $156 million in the first quarter of 2016. For the second quarter, the company’s equity investment in DCP Midstream had a loss of $9 million, compared with a $21 million adjusted loss in the prior quarter.