note: With the first-quarter earnings season
nearing its close, HP is recapping the results from major
market players in various segments. For a look at petrochemical results, click here.)
The first quarter of 2011 was a boon for many US and global
refiners, as higher oil and gasoline prices led to sharply
Crude values were up more than 30% on a year on year basis,
as political unrest in the Middle East and North Africa pushed
prices higher throughout the quarter.
Even BP, which recorded a $400mn pretax charge for 2010 oil
spill costs, posted a year-on-year profit despite the
fact that the first quarter a year ago was before the
Heres a rundown of how some of the top industry
Net income for
ExxonMobil, the largest US oil company, rose
69% to $10.7 billion as sales jumped 26% to $114 billion.
Oil-equivalent production was up more than 10% from the
prior years quarter, the company reported.
It was the fifth consecutive quarter in which ExxonMobil
posted an increase.
The companys earnings reflected continued
leadership in operational performance during a period of strong
commodity prices, chairman Rex Tillerson said.
Earnings for Chevron, the No. 2 US oil
company, were $6.2 billion 36% above the $4.6 billion
earned a year earlier.
Upstream earnings were $5.98 billion, up 27% from $4.72
billion last year.
The higher earnings came despite reduced production, which
dropped to 2.76mn bpd from 2.78mn bpd a year ago, including a
5.4% fall in US volumes.
Meanwhile, ConocoPhillips the No. 3 US
oil firm - saw first-quarter earnings jump 44% to $3.03
billion, with the company noting that oil and natural
gas liquids prices rose 27% in the quarter to
offset a 25% reduction in production to 1.7m bbl/day, said
ConocoPhillips, which has sold assets to focus on developing
oil fields in North America.
increased by 27% to $58.2 billion.
By segment, exploration and production adjusted
earnings were up 15% to $2.2 billion, while refining and marketing profits were
$482mn up from only $21mn a year earlier.
said it hadnt seen higher retail fuel prices impacting
largest US crude refiner, earned a profit in its first quarter
for the first time since 2009 as the gap between oil costs and
fuel prices more than doubled.
companys net income was $98mn, compared with a loss of
$113mn in the year-earlier period.
Sales for the
company jumped 42% to $26.3 billion.
Valero was benefitting from strong margins at its refineries in
the US Midwest, which had an easier access to the storage hub
in Cushing, Oklahoma.
WTI has traded
at a discount to imported Brent for much of 2011, as a
bottleneck at Cushing has constrained the flow of oil to US
Valeros Midwest refineries can more easily access
Cushing, allowing it to benefit from cheaper crude.
Valero said it
processed 2.1mn bpd of crude in the first quarter, up 8.6% from
1.9mn bpd a year earlier.
Marathon Oil reported a first-quarter profit
of $996mn, more than doubling the $457mn it made in the 2010
first quarter amid stronger commodity prices and improved
Marathons exploration and production (E&P)
business jumped by 33% to $668mn on increased prices for liquid
hydrocarbons and 11% higher sales, with growth in the Gulf of
Mexico and Norway offsetting production issues in Libya, the
Houston-based firm said its oil and gas output for the quarter
was 400,000 bpd, up from 361,000 bpd a year earlier.
Marathons refining, marketing and
transportation segment swung to a $527mn profit a
dramatic reversal from a $237mn loss in the 2010 period.
The positive earnings
trend continued on a global basis, with Royal Dutch
Shell posting profit excluding one-time items of $6.3
billion up 31% from $4.8 billion in the 2010 first
Shell reported that its refining profit more than doubled to
recent increase in oil prices clearly demonstrates the
interdependence of global energy suppliers and consumers, in an
industry that needs sustained investment in diverse energy
sources to meet customer demand, said CEO Peter
Shell also said
it was making good progress toward its plans of cutting costs
and selling assets.
In the first
quarter, Shell said it sold $3.2 billion in non-core
positions, including tight gas assets in South Texas.
Even BP, which committed an aforementioned
$400mn in a pretax charge for the oil spill, registered a
profit of $7.2 billion, 16% above the $6.2 billion posted a
increased 18% to $88.3 billion.
Chevron and ConocoPhillips,
BP has reported lower production levels in recent months, as
spill costs forced it to sell oil fields and refineries and the
US banned further Gulf of Mexico drilling.
prices coupled with the companys asset sales have
outweighed costs from the spill, allowing BPs profit to
rise year on year.
to the HPInformer blog next week for a similar earnings recap
of the global construction segment.