Latest news with #oilprices
Reuters
25 minutes ago
- Business
- Reuters
TotalEnergies' quarterly profit drops 23% on lower oil and gas prices
PARIS, July 24 (Reuters) - TotalEnergies ( opens new tab reported a 23% fall in second-quarter earnings on Thursday, the French oil major's worst performance in four years but in line with expectations, as lower oil and gas prices outweighed a rise in production and power sales. Adjusted net income fell to $3.6 billion for the three months to June 30, down from $4.7 billion a year earlier and $4.2 billion in the first quarter. Shares were down 1.4% to 52.59 euros at 0715 GMT. Brent crude prices have fallen 20% from a year ago as OPEC+ producers - members of the Organization of the Petroleum Exporting Countries and allies such as Russia - started to unwind output cuts of 2.17 million barrels per day in April. Norway's Equinor ( opens new tab on Wednesday reported a 13% drop in second-quarter profit, hit by lower oil prices. TotalEnergies' net debt leapt 89% year-on-year to $25.9 billion, pushing gearing - a measure of debt to equity - to 22.6% including leases, as the company made $2 billion of acquisitions and spent heavily on projects - even as it extended a $2 billion share buyback into the third quarter. "We do not expect investors to reward buybacks that are paid out of balance sheets indefinitely," RBC analyst Biraj Borkhataria said in an investor note. Refining and chemicals earnings fell 39% from a year ago, the company said. TotalEnergies' margin for refining crude into fuels dropped 21% from a year ago to $35.3 per ton, despite a slow recovery in the first half of 2025 from a collapse last year due to sagging demand and an increase in global competition. The company said it expected refining margins to rise above $50 per ton in the third quarter due to increased fuel demand during Europe's summer driving season. Profit from its integrated liquefied natural gas unit was down 9.6% year-on-year and 20% lower than the first quarter of 2025, as lower prices and less volatility meant traders could not profit from price changes. The integrated power unit beat forecasts, however, with a 14% rise in profit to $574 million. TotalEnergies also forecast a 3% increase in hydrocarbon output in the third quarter against the same period a year ago.
Zawya
an hour ago
- Business
- Zawya
Oman oil price reaches $70.52 per barrel
MUSCAT: The official price of Oman oil for September delivery on Wednesday reached $70.52. The price of Oman oil decreased by 18 cents compared to Tuesday's price of $70.70. The monthly average price of Omani crude oil for July delivery reached $63.62 per barrel, a decrease of $4.25 compared to the price for June delivery. Meanwhile, international oil prices fell for the fourth consecutive session on Wednesday, as investors assessed trade developments including a US tariff deal with Japan ahead of a US stocks data announcement. Brent crude futures were down 50 cents, or 0.7%, at $68.05 a barrel as of 11:19 GMT. US West Texas Intermediate crude futures were down 47 cents, or 0.7%, at $64.78 per barrel. Both benchmarks lost about 1% in the previous session after the EU said it was considering countermeasures against US tariffs. US President Donald Trump said on Tuesday that the US and Japan had struck a trade deal that included a 15% tariff on US imports from Japan. 'The slide (in prices) of the past three sessions appears to have abated but I don't expect much of an upward impetus from news of the US-Japan trade deal as the hurdles and delays being reported in talks with the EU and China will remain a drag on sentiment', said an analyst. — Agencies MUSCAT: The official price of Oman oil for September delivery on Wednesday reached $70.52. The price of Oman oil decreased by 18 cents compared to Tuesday's price of $70.70. The monthly average price of Omani crude oil for July delivery reached $63.62 per barrel, a decrease of $4.25 compared to the price for June delivery. Meanwhile, international oil prices fell for the fourth consecutive session on Wednesday, as investors assessed trade developments including a US tariff deal with Japan ahead of a US stocks data announcement. Brent crude futures were down 50 cents, or 0.7%, at $68.05 a barrel as of 11:19 GMT. US West Texas Intermediate crude futures were down 47 cents, or 0.7%, at $64.78 per barrel. Both benchmarks lost about 1% in the previous session after the EU said it was considering countermeasures against US tariffs. US President Donald Trump said on Tuesday that the US and Japan had struck a trade deal that included a 15% tariff on US imports from Japan. 'The slide (in prices) of the past three sessions appears to have abated but I don't expect much of an upward impetus from news of the US-Japan trade deal as the hurdles and delays being reported in talks with the EU and China will remain a drag on sentiment', said an analyst. — Agencies
Yahoo
6 hours ago
- Business
- Yahoo
Halliburton CEO: Oil and gas markets are 'softer' than expected and will remain weak for all of 2025
A combination of weaker oil prices, widespread spending cuts, and ramped-up OPEC crude oil volumes created a softer-than-expected industry environment that will continue at least through the rest of 2025, the CEOs of oilfield services leaders Halliburton and SLB said. Global economic volatility, including ongoing tariff uncertainty, is leading oil and gas producers to plan more conservatively for the rest of the year than anticipated, they said, although though the longer-term oil and gas outlook remains bullish. The U.S. and Mexico are showing particular weakness even as shale oil and gas technologies developed in the U.S. over the past 20 years spread worldwide from Argentina to Australia, said Halliburton chairman and CEO Jeff Miller during the July 22 earnings call. 'To put it plainly, what I see tells me the oilfield services market will be softer than I previously expected over the short to medium term,' Miller said, arguing that oil producers and countries are cutting back spending more dramatically than current oil prices would normally necessitate. The U.S. oil pricing benchmark is about $66 per barrel, and it would need to rise well above $70 to be considered relatively healthy for the industry. What that means for Halliburton and SLB is focusing more on technology and some of their service specialties while retiring some equipment and well completions—or fracking—fleets. 'We'll clearly stack some fleets just because we're not going to work at uneconomic levels,' Miller said. 'It's strategic for us, and it takes some equipment out of the market as well. But, from our perspective, working at uneconomic levels literally burns up equipment, creates HSE (health, safety, and environment) risk, and all sorts of things that we just don't want to do.' On the other hand, Halliburton (194 in the Fortune 500) is growing market share with its new autonomous and electrified fracking fleets, called Zeus IQ, and has partnered with Chevron (No. 16 in the Fortune 500) and others. Halliburton first developed early hydraulic fracturing, or fracking, techniques more than 75 years ago under founder Erle P. Halliburton. For all of 2025, Halliburton now estimates its North American revenues will decline by more than 10%. Halliburton reported second-quarter revenues that fell nearly 6% from $5.83 billion to $5.51 billion year over year. Net income plunged 33% from $709 million down to $472 million. The biggest oilfield services company in the world, SLB (479 in the Fortune Global 500), formerly Schlumberger, also saw its quarterly revenues dip 6% year on year to $8.55 billion. Net income of $1.01 billion fell by 9%. Oilfield outlook OPEC and its allies have surprised much of the energy industry since this spring by unwinding years of voluntary production cuts more rapidly than anticipated to gain back market share. Dumping those new barrels on a saturated global marketplace Is adding to the weaker oil price environment, leading U.S. oil and gas producers and others to cut back spending and, in many cases, oil and gas volumes. Adding to the weakness is the oilfield services sector becoming a victim of its own success. Efficiently gains now allow producers to extract more oil and gas per location without requiring as many drilling rigs and fracking fleets. In mid-July, SLB closed its nearly $8 billion acquisition of ChampionX. The merger gives SLB a stronger footprint in artificial lift and production chemicals. Such services keep the oil and gas wells flowing optimally long after they are drilled and put into operation, which CEO Olivier Le Peuch said helps SLB avoid some of the industry's inherent cyclicality. Even as drilling activity slows down, the existing wells still need just as much servicing and maintenance. In fact, the number of drilling rigs active in the U.S. has fallen by 7% in the past 12 months, down to 544 active rigs, according to research firm Enverus, and the decline is expected to continue. Nearly half of all the active rigs are in the still-booming Permian Basin in West Texas and southeastern New Mexico. 'As we have seen more recently, the short-cycle markets have been more reactive to the persistent slightly lower commodity price than anticipated,' Le Peuch said. 'Yet, all in, we are seeing this as a resilient market going forward.' This story was originally featured on
Yahoo
10 hours ago
- Business
- Yahoo
Why Analysts Favor The Unloved Energy Stocks
Although the outlook on oil prices and demand has become increasingly uncertain in recent months, analysts continue to recommend the underperforming energy stocks as a good bet for investors. Energy has the highest share of the stocks with 'buy' recommendations of all 11 sectors of the S&P 500, according to ratings from Wall Street analysts compiled by Bloomberg. Many experts cite the cheap valuations of the energy sector and the pro-oil and gas policies of the Trump Administration as key drivers of future stock growth. Moreover, energy commodities could offer protection against inflation, which could accelerate due to President Trump's chaotic on-and-off trade and tariff policies. 'Historically, energy generated the strongest real returns across assets when inflation surprised to the upside,' Goldman Sachs said last year. The investment bank's analysis found that inflation surprises to the upside usually boost real returns for commodities, and lower returns for equities and bonds. This summer, Wall Street analysts believe that energy stocks can stage a rebound in the coming energy sector in the S&P 500 index boasts the highest proportion of stocks rated 'buy' by analysts—74%, per the data compiled by Bloomberg. Information technology is the second most recommended sector, with 65% of stocks rated 'buy' by analysts. The average for all S&P sectors is about 50% buy-rated stocks. This suggests that the Street is more bullish on energy overall than on Big Tech as a whole. A key reason for this is that the energy sector looks very cheap in terms of stock price to earnings ratio. It's actually the cheapest of all 11 sectors. 'The thesis that some people have is that multiples and valuations are very, very low right now,' Leo Mariani, analyst at Roth Capital Partners, told Bloomberg in an interview. Low valuations and the past underperformance are setting the stage for a comeback of the oil and gas stocks, according to analysts. For example, sell-side analysts forecast energy stocks will grow by about 16% over the next 12 months, double the expected rise of the S&P 500 index, and the second-highest growth rate among the 11 sectors, trailing only behind health care, Bloomberg's data show. So far this year, the energy sector has underperformed the S&P 500, with a gain of 3.16% year to date, compared to a 7.3% rise for the broader index as of July 22. The Oil & Gas E&P subsector has underperformed even more, losing 6.52% year to date. The 1-year return for the subsector is a negative 16.95%, compared to a 14.62% return of the S&P 500. Despite the Street's bullish view on the energy sector, investors seem unconvinced. Uncertainty about oil demand and prices is trumping the power of the inflation hedge attributed to commodities. Moreover, fluctuating and lower oil prices would stifle earnings at oil and gas companies. 'Earnings growth might struggle if oil prices continue to fall on the heels of both relatively weak demand and a continued recovery in supply,' analysts at the Schwab Center for Financial Research (SCFR) wrote last week in a monthly outlook on the 11 S&P 500 sectors. 'While Energy tends to be cyclical and to do well when the Federal Reserve is cutting rates slowly, global commodity prices (particularly oil) fall under pressure if growth continues to slow.' SCFR has had a Marketperform rating on all sectors since the first major tariff blitz in early April. 'Until we have more clarity on trade policy we are cautious about asserting an Outperform or Underperform view on any sector,' the analysts wrote. Major oil companies themselves have warned of lower earnings for the second quarter on the back of the decline in oil and gas prices compared to early this year and this time last year. By Tsvetana Paraskova for More Top Reads From this article on
Yahoo
a day ago
- Business
- Yahoo
Oil prices stabilise after US-Japan trade deal
By Mohi Narayan NEW DELHI (Reuters) -Oil prices were little changed on Wednesday after falling for three consecutive sessions as a U.S. tariff deal with Japan improved global trade sentiment. Brent crude futures were down 2 cents, or 0.03%, at $68.57 a barrel as of 0654 GMT. U.S. West Texas Intermediate crude futures were also down 2 cents, at $65.29 per barrel. Both benchmarks lost about 1% in the previous session after the EU said it was considering countermeasures against U.S. tariffs, as hope faded for a deal ahead of an August 1 deadline. President Donald Trump said on Tuesday that the U.S. and Japan had struck a trade deal that includes a 15% tariff on U.S. imports from Japan. He also said Japan had agreed to invest $550 billion in the U.S. Meanwhile, industry expectations are low for Thursday's EU-China summit, which will test the bloc's unity and resolve amid mounting trade tensions with both Beijing and Washington. "The slide (in prices) of the past three sessions appears to have abated but I don't expect much of an upward impetus from news of the U.S.-Japan trade deal as the hurdles and delays being reported in talks with the EU and China will remain a drag on sentiment," said Vandana Hari, founder of oil market analysis provider Vanda Insights. China's commerce minister and the European Union's trade chief had a "candid and in-depth" discussion on economic and trade cooperation as well as other issues that both sides face ahead of the summit, the Chinese ministry said on Wednesday. Separately, U.S. crude and gasoline stocks fell last week, market sources said, citing American Petroleum Institute figures on Tuesday. Distillate stocks rose by 3.48 million barrels, they added. "This will offer some relief to the middle distillate market, which has been looking increasingly tight," ING analysts wrote in a note, adding that low crude inventories will offer some support to prices even as a large surplus is expected to hit the market later in the year. In another bullish sign for the crude market, the U.S. energy secretary said on Tuesday that the U.S. would consider sanctioning Russian oil to end the war in Ukraine. The EU on Friday agreed its 18th sanctions package against Russia, lowering the price cap for Russian crude. But analysts said a lack of U.S. participation would hinder the effectiveness of the package. Sign in to access your portfolio
