Published on : Aug 07, 2014
Due to rising violence and crimes in Iraq, both the energy companies, Chevron (CVX) and Exxon (XOM) earnings experienced rising oil prices.
According to the August 1 earnings at Chevron, the net income was $5.7 billion and total earnings (per share) were $2.98. The earnings at Chevron increased from the second quarter of 2013 with a net income of $5.4 billion and earnings touching $2.77 (per share). The rising oil prices helped the company achieve total revenue of $55.6 billion for the second quarter, increasing from $55.3 billion in the second quarter of 2013. The upstream and downstream reports on energy earnings were augmented with the violence seen in Iraq.
Consecutively, Exxon also accounted a positive earnings in the second quarter with a per share amount of $2.05 defeating the consensus of the analysts’ estimate of worth $1.86, on Thursday, July 31. Also, the net income for the second quarter was worth $8.8 billion, rising up from a value of $6.9 billion 2013. At the value of $2.05, the earnings were up by $0.50 from the second quarter of 2013. The second quarter earnings at Exxon exhibited total revenue of $111.65 billion increased by higher oil prices in the industry. Exxon was not reported with any sort of disruptions or violence in the Middle East.
While both the companies are functioning well in the Middle East’s refinery and production processing segments, Iraq and its surrounding countries on the other hand, are still facing an economic slowdown in the global oil production pertaining to the overall Energy market. At present, Iraq is the fourth-largest reserve of oil in the world. But the country shall be affected further with slowdowns in oil production and oil prices until the state of hostility comes to an end.
While oil production is struggling in these regions of the world, the U.S. is not impacted at all. In fact it exemplifies strong earnings from both the companies for the second quarter. By far, Chevron is up by 0.65% and Exxon Mobil is down by 2.18% - a step below to Dow Jones Industrial figures which is valued at -0.81%.
Additionally, through August 6, the S&P 500 Energy segment has gained an overall value of 8.02%.