July 23, 2020 Read More →

Second quarter results for oil and gas majors will be ‘brutal and ugly’


Oil and gas majors are likely to report “horrendous” second-quarter results over the next two weeks, energy analysts have told CNBC, with the three-month period through to the end of June widely expected to mark the “low point” of 2020.

“Big Oil” companies, referring to the world’s largest oil and gas majors, witnessed a historic fall in oil and gas prices during the second quarter as coronavirus lockdown restrictions coincided with an unprecedented demand shock.

Norway’s Equinor will report second-quarter earnings on Friday, with Austria’s OMV, Italy’s Eni, France’s Total and Anglo-Dutch company Shell set to report next week. The U.K.’s BP will unveil their quarterly results on August 4.

Stateside, ConocoPhillips will report earnings on July 30, with Exxon Mobil and Chevron expected to follow on July 31.

“I think it is going to be brutal and ugly,” Kathy Hipple, an analyst at the Institute for Energy Economics and Financial Analysis (IEEFA), told CNBC via telephone.

Hipple pointed out that international benchmark Brent crude futures averaged just $29 a barrel in the three months through to June, down from an average of $51 a barrel in the first quarter. 

[Sam Meredith]

More: ‘It is going to be brutal’: What to expect as oil and gas majors unveil their second-quarter results

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