ExxonMobil and Chevron both reported steep declines in Q3 earnings this morning, becoming the latest oil giants hit by lower prices.
Why it matters: Exxon is the largest U.S.-based multinational oil-and-gas company, and its financial performance has struggled in recent years.
Where it stands: Exxon reported $3.17 billion in Q3 profits, down from $6.24 billion in the same period in 2018.
- The company's earnings of 75 cents per share announced Friday beat forecasts and its stock ticked up slightly in pre-market trading.
The big picture: The company's report said its production rose 3% to 3.9 million barrels of oil-equivalent per day compared to Q3 of 2018.
- However, that was nowhere near enough to offset lower prices, weaker margins in its refining business, and higher capital spending.
Turning to Chevron, the company reported $2.58 billion in Q3 profits, down from $4.05 billion during the same period last year.
- “Lower crude oil and natural gas prices more than offset a 3 percent increase in net oil-equivalent production from last year's third quarter," CEO Michael Wirth said in a statement.
The bottom line: Via Bloomberg, "Oil producers are bracing for a tough 2020 amid signs that worldwide crude output will swamp demand, despite the best efforts of OPEC and allied producers to control supplies."
- "Meanwhile, a raging trade war between the world’s two largest economies is undercutting demand for petroleum-based fuels and chemicals."
