Profit of oil companies rises in the first quarter of the year
The profit of some of the world’s largest oil companies in the first quarter of this year increased multifold compared to the same period last year.
Geopolitical tensions over the past three months have led to an already turbulent energy market becoming even more turbulent.
This time, as we can see from the announcements of the oil companies’ results so far, this has had a strong positive effect on their financial results.
“Oil companies have had an incredible journey”
Thus, in just two years, oil companies have had an incredible journey – from oil prices that hit the low of US$40 in April 2020 to returning to the level of over US$100 that we are witnessing these days.
If we concentrate only on European companies, we will see that French Total reported earnings of US$8.9 billion, which is three times higher than the results achieved in the first three months last year.
By comparison, in the first quarter of 2020, marked by the coronavirus pandemic, this company had a profit of US$1.8 billion.
This year, Shell had a 25 percent growth this year, ending the quarter with the earnings of US$7.1 billion.
Just two years ago, this giant was down about US$30 million.
The profit of Norwegian Equinor amounted to US$4.7 billion, which is more than 100 percent better than last year’s profit. The situation was quite different in 2020 because the Norwegian company then announced a loss of about US$700 million.
Italy’s ENI said it had a net profit of 3.5 billion euros, 300% more than last year’s profit.
This company is perhaps the best example of the turbulence affecting the oil sector, as it ended the first quarter of 2020 with 2.9 billion euros.
Geographically more distant, but not less significant, Exxonmobil doubled its earnings and reported a gain of US$5.4 billion. Two years ago, in the same period, this company had a deficit of more than US$600 million.