Big Oil companies Exxon Mobil and Chevron are both set to report a significant drop in profit year-over-year when they hand down their second-quarter earnings on Friday, June 28 before the opening bell.
Oil and gas prices have fallen dramatically from this time last year after spiking in the wake of Russia's invasion of Ukraine, putting pressure on both companies' bottom lines.
Analysts, on average, expect Exxon to post earnings per share (EPS) of $2.04, according to Zacks Consensus Estimate, which would be a 50.4% drop from EPS of $4.14 in the second quarter of 2022.
A regulatory filing shows the company’s earnings dropped to about $7.8 billion from $17.85 in the year-ago quarter on lower natural gas prices and weaker oil refining margins, Reuters reported earlier this month.
Its revenue is also expected to decline by 31.8% year-over-year from $115.68 billion to $78.85 billion.
Chevron told investors earlier this week that it expects its 2Q earnings to drop by nearly 50% from the year-ago quarter.
In preliminary 2Q results released Monday, the company said it expects to report a profit of $6 billion for the quarter, down about 48.3% year-over-year but ahead of Wall Street expectations per a Bloomberg survey of $5.5 billion.
The company expects to post an adjusted profit of $5.8 million or $3.08 per share, which would also top the Street expectation of $2.97.
The company will post its full 2Q earnings on Friday when Exxon is also due to report.
Exxon shares were trading down 0.9% at US$104.75, while Chevron stock was 0.9% lower at US$161.15 on Wednesday morning.
Contact the author at emily.jarvie@proactiveinvestors.com
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