Exxon, Chevron shares slump, oil price hit
Exxon Mobil, Chevron slumped on results and output outlooks amid lower oil prices. But, is an oil price rise coming amid growing expectations that central banks like the Fed and ECB are near the end of policy tightening campaigns?
(Video Transcript)
Exxon Mobil earnings
ExxonMobil, a big player in the energy sector, recently reported a big drop in their earnings for the second quarter. Compared to the same time last year, their net income went down by 56%. So, instead of making $17.8 billion, they only made $7.8 billion. This happened because energy prices have been falling.
It's worth noting that these numbers are being compared to a really high starting point, because oil prices had shot up before due to Russia's invasion of Ukraine. So, while ExxonMobil and other companies in the energy sector are having a tough time right now, they had an unusually good year before.
Chevron
Chevron, another big company in the industry, is also seeing their earnings go down. In the second quarter, they made $47.2 billion, compared to $68.7 billion the year before. So, their total revenues and other income went from $68.7 billion to $48.9 billion.
Other oil companies like Shell and Total Energies are also making a lot less money, with their profits dropping by 48% and 49% respectively. Overall, the whole energy sector is struggling.
The lower earnings are because energy prices are falling and there are also other issues happening around the world that are affecting the industry.
So, while things are tough right now, it's important to remember that last year was exceptional because of the high oil prices. It looks like the energy sector is going through a difficult period at the moment.
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