Last week, Shell and Chevron reported reduced fourth-quarter earnings while refiner Phillips 66 reported a 39 percent increase in the fourth quarter of 2014 compared to the same period in 2013
Royal Dutch Shell reported last Thursday that fourth quarter net income fell significantly to $595 million and said that it would cap spending this year in response to falling oil prices. On a current cost of supplies basis, which excludes the impact of changes in the oil price on inventory, fourth quarter earnings rose 93 percent to $4.2 billion. For the year, such earnings rose 14 percent to $19 billion.
Chevron Corporation last Friday reported earnings of $3.47 billion for fourth quarter 2014, compared with $4.93 billion in the 2013 fourth quarter. Foreign currency effects increased earnings in the 2014 quarter by $432 million, compared with an increase of $202 million a year earlier. Full-year 2014 earnings were $19.2 billion compared with $21.4 billion in 2013. Sales and other operating revenues in fourth quarter 2014 were $42 billion, compared to $54 billion in the year-ago period. Earnings in Chevron's upstream unit dropped 45 percent. U.S. upstream earnings of $432 million in fourth quarter 2014 were down $371 million from a year earlier. U.S. downstream operations' fourth quarter 2014 profit were up nearly fourfold, earning $889 million compared with earnings of $265 million a year earlier. International downstream operations were also up significantly at $629 million in the fourth quarter 2014 compared with $125 million a year earlier.
Refiner Phillips 66 last Thursday announced increased revenues for 2014 and earnings increases in 2014 of 28 percent from the year prior, and of 39 percent in the fourth quarter of 2014 compared to the final three months of 2013. Phillips 66's fourth-quarter earnings were $1.147 billion compared with earnings of $1.180 billion in the third quarter of 2014 and $826 million in the fourth quarter of 2013. Adjusted earnings, excluding special items of $234 million, were $913 million in the fourth quarter, compared with adjusted earnings of $1.14 billion in the third quarter of 2014. Refining recorded fourth-quarter adjusted earnings of $322 million compared to $558 during the third quarter 2014. Marketing and Specialties fourth-quarter adjusted earnings were $324 million, compared with $259 million in the third quarter of 2014. While the increase was mostly related to the reinstatement of biodiesel blending tax credits, the business continued to benefit from strong margins. Phillips 66's full-year 2014 earnings were $4.8 billion. This compares with $3.7 billion in 2013. Full-year adjusted earnings were $3.726 billion in 2014 compared with $3.643 billion in 2013. Conoco-Phillips on the other hand reported a big fourth-quarter loss off $39 million compared with fourth-quarter earnings of $2.5 billion the year before.
ExxonMobil reports earnings today and BP is scheduled to report earnings tomorrow.
