Every oil major — including Exxon, Chevron, Shell, BP, Total, Eni, and Equinor — are expected to report large losses in their next earnings reports, according to analysts surveyed by Bloomberg.
In June, both majors — the largest in Europe by market value — announced that they're writing down billions of dollars in assets."BP now sees the prospect of the pandemic having an enduring impact on the global economy, with the potential for weaker demand for energy for a sustained period," BP said in a. "BP's management also has a growing expectation that the aftermath of the pandemic will accelerate the pace of transition to a lower-carbon economy and energy system.
US companies Exxon and Chevron are expected to report net losses of about $3 billion and about $1.4 billion, respectively, in the second quarter. Shell took investors and analysts by surprise when itback in April, citing weaker demand and lower oil prices. Reducing capital spending and laying off staff is part of the cheap-oil playbook, analysts said — axing the prized dividend is not. Equinor is the only other major that has cut its dividend since the pandemic took root.
Shell cut its dividend to aggressively pay down debt, said Jason Gabelman, an analyst at Cowen. It was also part of a strategy to pivot into renewable energy, said Duane Dickson, a vice-chairman and oil-and-gas analyst at Deloitte.
Nigeria Nigeria Latest News, Nigeria Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: BusinessInsider - 🏆 729. / 51 Read more »
Source: BusinessInsider - 🏆 729. / 51 Read more »
Source: BusinessInsider - 🏆 729. / 51 Read more »
Source: CNBC - 🏆 12. / 72 Read more »