ExxonMobil

ExxonMobil last Monday reported that earnings fell 21 percent in the fourth quarter. The oil giant said it earned $6.57 billion in the final three months of 2014 on revenue of $87.28 billion, down from $8.35 billion on revenue of $110.86 billion in the year-ago quarter. For the year, Exxon earned $32.5 billion, down slightly from $32.6 billion in 2013, on $411.9 billion in revenue, down 6% from 2013.

Fourth quarter earnings from U.S. Upstream operations were $1.5 billion, $317 million higher than the fourth quarter of 2013. Non-U.S. Upstream earnings were $4.0 billion, down $1.6 billion from the prior year.

Downstream earnings were $497 million, down $419 million from the fourth quarter of 2013. The U.S. Downstream recorded a loss of $1 million, down $598 million from the fourth quarter of 2013. Non-U.S. Downstream earnings of $498 million were $179 million higher than the prior year.

Chemical earnings of $1.2 billion were 35%, or $317 million higher than the fourth quarter of 2013. Margins increased earnings by $490 million. Volume and mix effects decreased earnings by $60 million. All other items, primarily unfavorable foreign exchange effects, decreased earnings by $110 million.

Exxon said its net income got a $1 billion boost from deferred income taxes in the U.S. and an arbitration ruling over assets in Venezuela that had been seized by the Venezuelan government.

For the full year, Upstream earnings were $27.5 billion, up $707 million from 2013. Lower prices decreased earnings by $2.0 billion. Favorable volume effects increased earnings by $510 million. All other items, primarily asset sales and favorable U.S. deferred income tax items, increased earnings by $2.2 billion. Full year earnings from U.S. Upstream operations were $5.2 billion, up $1.0 billion from 2013. Earnings outside the U.S. were $22.4 billion, down $299 million from the prior year.

Full year Downstream earnings of $3.1 billion decreased $404 million from 2013. U.S. Downstream earnings were $1.6 billion, a decrease of $581 million from 2013. Non-U.S. Downstream earnings were $1.4 billion, up $177 million from the prior year.

Full year Chemical earnings of $4.3 billion increased $487 million from 2013. Higher commodity-driven margins increased earnings by $520 million, while volume and mix effects increased earnings by $100 million.

BP

On an unadjusted basis, BP last Tuesday reported a replacement cost loss in the fourth quarter of $969 million, down from a profit of $1.5 billion a year ago. Adjusting for a $3.6 billion write-down relating to the impact of lower oil prices, its underlying replacement cost profit for the quarter was $2.24 billion, compared to $2.81 billion a year ago.

BP took a $3.6 billion post-tax net charge for non-operating items in the quarter, mainly relating to impairments of Upstream assets reflecting the impact of the near-term lower oil price environment, revisions to reserves and other factors. As a result, including this charge and other effects, BP reported a replacement cost loss of $969 million for the fourth quarter of 2014. Revenue fell 21% to $74 billion.

Despite a plunging Ruble, BP’s nearly 20 percent stake in Russia’s Rosneft, added $470 million in the fourth quarter to the company’s bottom line, compared with $1.1 billion in the same quarter of 2013.

On an unadjusted basis BP posted an underlying replacement cost profit of $12.14 billion for the year compared with $13.4 billion reported for 2013.

Underlying replacement cost profit, as defined by BP, is adjusted for non-operating items and fair value accounting effects.