Oil Companies: London’s top oil company missed forecasts, causing a 2% drop in its shares. In a tough oil market, the London-listed oil major’s earnings fell below expectations. This caused shares to drop by 2%. Buyers expected lower earnings but still wanted more. Stuart Lamont from RBC Brewin Dolphin confirmed positive news on share buyback program and dividends, but raised market concerns.
Total Energies, a French oil company, reported lower-than-expected earnings, with a 49% decrease in net income compared to the previous year. Total Energies CEO Patrick Pouyanne attributed the company’s strong earnings to a robust yet declining oil and gas market. Equinor’s Q2 profit dropped 57% YoY. This was due to lower oil and gas prices compared to last year’s peak.
After Russia invaded Ukraine, the top five oil companies in the West earned nearly $200 billion in 2022. This occurred due to the increase in fossil fuel prices. Due to global economic uncertainty, oil and gas costs were under pressure. This impacted the energy industry.
Shell was criticized for not cutting oil supply for profit. Shell aims to maintain current oil production levels until the end of the decade. This aligns with its goal of becoming net-zero by 2050. In 2023, the company plans to spend up to $15 billion on low-carbon projects, lower than before.
Despite pressure from climate activists, Shell’s CFO Sawan aims to balance energy shift with shareholder returns. Climate protests halted the company’s AGM in May. This shows growing dissatisfaction with the
Big Oil voting season.
Investors await earnings reports from BP, Exxon Mobil, and Chevron as the energy industry adapts. Businesses must adapt to industry changes and prioritize profitability while minimizing harm to the environment.