Last week, the major integrated oil companies reported third quarter financial results which, for the most part, were positive. Shell, ExxonMobil and Chevron reported increased third quarter 2014 earnings compared to the same quarter a year ago while BP and Total reported reduced third quarter earnings. Refiner Phillips 66 reported a significant earnings increase.

BP last Tuesday reported that its underlying replacement cost profit for the third quarter was $3.0 billion, compared with $3.7 billion for the same period in 2013. Operating cash flow for the quarter was $9.4 billion, compared with $6.3 billion in 3Q 2013. Total operating cash flow for the first nine months of 2014 was $25.5 billion. BP’s Upstream segment reported underlying pre-tax replacement cost profit of $3.9 billion for 3Q 2014 compared with $4.4 billion a year earlier. The Downstream segment reported underlying pre-tax replacement cost profit for the quarter of $1.5 billion compared with $0.7 billion a year earlier. The improvement was driven by a stronger refining environment as well as an increased contribution from supply and trading activities. BP reported underlying net income from Rosneft for the quarter of $110 million compared with $808 million a year earlier. The depreciation of the rouble against the dollar over the period had a significant impact on the result, together with lower Urals oil prices and associated duty tax lag effects.

France's Total reported last Wednesday that its replacement cost profit slid 2 percent to $3.56 billion in the three months to September from $3.63 billion in the same period a year earlier. Adjusted net profit in the refining and chemicals unit rose 70 percent, only partly offsetting a 10 percent drop in the upstream business and a 16 percent fall in the marketing and services unit - mainly petrol stations. Third-quarter revenue fell 2 percent year-on-year to $60.36 billion, while adjusted cash flow from operations was down 7 percent to $6.74 billion. Europe's second-largest oil company elevated former refining head Patrick Pouyanne to the top post following the death this month of its chief executive Christophe de Margerie in a plane crash in Russia.

Royal Dutch Shell last Thursday reported third quarter 2014 earnings, on a current cost of supplies (CCS) basis, were $5.3 billion compared with $4.2 billion for the same quarter a year ago. Third quarter 2014 CCS earnings excluding identified items were $5.8 billion compared with $4.5 billion for the third quarter 2013, an increase of 31%. Compared with the third quarter 2013, CCS earnings excluding identified items benefited from improved Downstream and Upstream results. Shell’s Upstream business saw a 25 per cent jump in earnings to $4.3 billion; In the Downstream division, underlying earnings doubled to $1.75 billion. In Downstream, earnings benefited from increased contributions from refining including improved operating performance, and trading. In Upstream, earnings increased due to the impact of new, higher-margin production, lower exploration expenses, and higher earnings from Integrated Gas, despite the effect of lower oil prices and volumes overall. The increase of a deferred tax liability as a result of the weakening Australian dollar reduced earnings by some $400 million compared with the third quarter 2013. Basic CCS earnings per share excluding identified items increased by 30% versus the third quarter 2013. Cash flow from operating activities for the third quarter 2014 was $12.8 billion, compared with $10.4 billion for the same quarter last year. Excluding working capital movements, cash flow from operating activities for the third quarter 2014 was $11.1 billion, compared with $9.9 billion for the third quarter 2013.

ExxonMobil last Friday reported a 3 percent increase in quarterly profit on higher results in its refining and chemicals businesses. Profit in the third quarter rose to $8.07 billion from $7.87 billion in the year-ago period. Third quarter revenue was $107.5 billion compared to $112.37 billion the previous years same quarter. Profit for the first nine months rose 7% to $25.95 billion from $24.23 billion in the year-ago period. In the downstream segment, ExxonMobil reported U.S. Downstream net was $460 million, up $145 million, while International Downstream net was $564 million, up $287 million. In the upstream segment, the company said International Upstream net was $5.16 billion, down $504 million, while U.S. Upstream net was $1.26 billion, up $207 million. Chemical earnings were $1,200 million, up $175 million compared to the third quarter of 2013.

Chevron last Friday reported that its quarterly profit rose 13 percent. The company posted net income of $5.59 billion compared with $4.95 billion in the year-ago period. Sales and other operating revenues in third quarter 2014 were $52 billion, compared to $57 billion in the year-ago period. U.S. upstream earnings of $929 million in third quarter 2014 were down $97 million from a year earlier. International upstream earnings of $3.72 billion decreased $346 million from third quarter 2013. Foreign currency effects increased earnings by $344 million in the 2014 quarter, compared with a decrease of $188 million a year earlier. U.S. downstream operations earned $809 million in third quarter 2014 compared with earnings of $249 million a year earlier. International downstream operations earned $578 million in third quarter 2014 compared with $131 million a year earlier. Foreign currency effects increased earnings by $21 million in the 2014 quarter, compared with a decrease of $86 million a year earlier.

Refiner Phillips 66 announced last Wednesday third-quarter earnings of $1.2 billion, compared with earnings of $863 million during the second quarter of 2014. Adjusted earnings were $1.1 billion, an increase of $277 million from the second quarter of 2014. Refining recorded earnings of $558 million in the third quarter, compared with earnings of $390 million in the second quarter of 2014. Marketing and Specialties (M&S) third-quarter earnings were $368 million and adjusted earnings were $259 million. This compares with earnings of $162 million during the second quarter of 2014. Earnings from Marketing and Other were $325 million in the third quarter, which included the expected partial recognition of the deferred gain from the sale of a power plant in July 2013. Adjusted earnings were $216 million, an increase of $97 million compared with earnings in the second quarter of 2014. Phillips 66’s Specialties businesses generated earnings of $43 million during the third quarter, in line with second-quarter 2014 earnings. Midstream earnings were $115 million in the third quarter, compared with earnings of $108 million in the second quarter of 2014. The Chemicals segment which reflects Phillips 66's equity investment in Chevron Phillips Chemical Company LLC (CPChem), reported that third-quarter Chemicals earnings were $230 million and adjusted earnings were $299 million. This compares with earnings of $324 million in the second quarter of 2014.