- N. Macedonia set for rocky ties with EU neighbours as opposition wins vote
- Joselu earns Madrid incredible Bayern comeback to reach Champions League final
- Israel destroys dozens of Bedouin homes in Negev desert
- Brazil flooding death toll surpasses 100
- European stocks rise while Wall Street has another mixed session
- Ohtani interpreter to plead guilty over $17 mn fraud: US Justice Dept
- Fiorentina reach Europa Conference League final
- Halting bomb delivery, Biden sends sternest sign yet to Israel
- US Open champion Clark defends breakthrough title at Quail Hollow
- Rangers to unveil Walter Smith statue on day of Scottish Cup final
- After Serbia, China's Xi arrives in Hungary to tighten bonds
- Iran jails film director Rasoulof for 'security' offences: lawyer
- South Gaza hospitals have only three days' fuel left: WHO
- Pro-Palestinian campus protests spread to UK universities
- Olympic flame arrives on French soil for Paris Games
- 2023 'year of record climatic hazards' in Latin America: UN
- UK says to expel Russia defence attache for intel role
- Korda seeks LPGA record sixth win in a row at Founders Cup
- Head, Abhishek star as 'unreal' Hyderabad crush Lucknow by 10 wickets
- McIlroy won't return to PGA Policy Board, Simpson to stay
- Brazil flooding death toll reaches 100
- Kenya inks deal to end doctors' strike
- EU eyes first ever sanctions on Russia's LNG sector
- RFK Jr says doctor told him a worm ate part of his brain: US media
- Track cycling star Benjamin Thomas escapes to win Giro 5th stage
- Osaka wins in Rome after three-year absence
- F1 champions celebrate life of motorsport great Stirling Moss
- US revokes some licenses for exports to China's Huawei
- Ukraine lawmakers back bill allowing prisoners to join army
- Kenya health ministry says deal signed to end doctors' strike
- Suspect held in latest attack on German politicians
- Ex-England cricketer Panesar quits as UK parliamentary candidate
- EU queries X over cut to content moderation resources
- Chad opposition candidate's party condemns 'threats and violence'
- Remastered Beatles movie 'Let It Be' gets long-awaited re-release
- Dortmund, Bayern runs put Leverkusen title in perspective: Alonso
- Flood-hit Kenya reports dozens of cholera cases
- Nadal welcomes unusual role of underdog
- Hong Kong demands online platforms remove banned protest song
- Prince Harry in London, but not meeting King Charles
- Spain prosecutors seek to close Shakira tax fraud case
- Hope dwindles in S.Africa 48 hours after deadly building collapse
- Tunisian Olympic champion Hafnaoui raises doubts about title defence
- BMW says EU probe into China EV subsidies against free trade
- Dozens of cholera cases reported in flood-hit Kenya
- April temperatures in Indonesia hottest for more than four decades
- China's Xi welcomed with 'respect and love' in Serbia
- Israel pounds Gaza as truce talks resume
- What a feet: Viral Dutch artist paints 10 pictures at once
- Ukraine warns of outages after 'massive' attack on power plants
JRI | -0.26% | 11.565 | $ | |
NGG | 0.32% | 69.84 | $ | |
BCC | 1.91% | 133.21 | $ | |
BCE | 0.48% | 33.62 | $ | |
RYCEF | 2.07% | 5.32 | $ | |
SCS | 0.86% | 12.81 | $ | |
RBGPF | -1.1% | 56.25 | $ | |
RIO | -1.48% | 69.02 | $ | |
CMSD | -0.78% | 24.43 | $ | |
VOD | -0.35% | 8.46 | $ | |
GSK | -0.02% | 44.14 | $ | |
AZN | 0.84% | 76.97 | $ | |
CMSC | -1.53% | 24.14 | $ | |
RELX | 0.12% | 42.94 | $ | |
BTI | 0.63% | 30.16 | $ | |
BP | -0.13% | 37.53 | $ |
US oil giants' profits dip as Exxon deal nears finish line
ExxonMobil and Chevron both reported a dip in profits Friday on lower refining margins and natural gas prices, but ExxonMobil's big takeover appears on track to close before Chevron's.
ExxonMobil, which had targeted the second quarter to complete a $60 billion takeover of US shale player Pioneer Natural Resources, reported profits of $8.2 billion, down 28 percent from the year-ago period.
Similar results from Chevron showed how the petroleum sector, while off its peak, remains highly profitable, enabling billions of dollars in shareholder payouts.
While commodity prices for liquid hydrocarbons rose slightly and ExxonMobil continued to score impressive volumes from Guyana, those benefits were more than offset by a 32 percent drop in natural gas prices.
The company's energy products business also experienced a big drop in earnings on weaker refining profit margins despite reporting record first-quarter refining throughout.
Revenues dipped four percent to $83.1 billion.
In a conference call with analysts, ExxonMobil Chief Executive Darren Woods expressed confidence in closing the Pioneer transaction in the second quarter, describing "constructive" work with US regulators reviewing the deal for competitiveness concerns.
"As we've said all along, we're very confident that there are no antitrust issues," Woods said.
- Speedbump for Chevron deal -
Rival oil giant Chevron reported profits of $5.6 billion, down 16 percent on revenues of $48.7 billion, down four percent.
The earnings fall was due to lower refinery margins and natural gas prices, partly offset by increased production in the United States, Chevron said.
While ExxonMobil's Pioneer deal appears on the cusp of closing, Chevron's proposed $53 billion takeover of Hess hit a speedbump following a challenge from ExxonMobil.
At issue is Hess's 30 percent stake in the Stabroek Block offshore Guyana, a mammoth oilfield that was a driver of the Chevron's takeover. The issue became public in late February after Chevron announced the acquisition in October.
ExxonMobil, which holds 45 percent of Stabroek, has argued that Chevron-Hess transaction ignores a provision in the venture that gives it "pre-emption rights" and "diminishes an element of value due ExxonMobil," said Woods, adding that the company filed for arbitration on the matter.
Chevron Executive Mike Wirth told CNBC that a third-quarter hearing of the arbitration and a fourth-quarter resolution "would be appropriate."
While Chevron is "very confident" of Hess' position in the arbitration, Wirth said that Chevron could exit the transaction if Hess' arbitration over Guyana is unsuccessful.
Both oil giants continued to steer extra cash to shareholders, with ExxonMobil paying out $6.8 billion in dividends and stock repurchases during the quarter and Chevron allocating $6.0 billion.
Shares of ExxonMobil fell 3.8 percent in mid-morning trading, while Chevron dropped 0.7 percent.
M.Furrer--BTB