Q3 saw volatile oil prices and rising costs push down year-on-year profits for all top international oil majors. Yet segment performances reveal breakthrough signs. Here’s a concise breakdown of results from ExxonMobil, Shell, TotalEnergies, Chevron, and bp.
ExxonMobil reported an adjusted profit of $8.058 billion in Q3, a 6% year-on-year decrease. For the first three quarters, its cumulative profit reached $22.853 billion. Despite the profit decline, the company achieved a 9.6% year-on-year increase in production and a 28% quarter-on-quarter growth in operating cash flow. Its upstream business remained a stable pillar, while only the chemicals segment saw profits halved year-on-year.
Shell posted an adjusted profit of $5.432 billion in Q3, down 10% year-on-year, with the cumulative decline widening to 24% in the first three quarters. Profit from its integrated natural gas business fell 25% year-on-year, but its renewable energy business turned profitable with $92 million in earnings—reversing last year’s loss and marking initial success in its transformation.
TotalEnergies emerged as the most stable performer among the five, with an adjusted net profit of $3.98 billion in Q3, a mere 2% year-on-year decrease. Its production rose 4.1% year-on-year, and profits from the downstream and refining & chemicals segments grew year-on-year against the trend. This diversified business structure effectively eased pressure on its upstream operations.
Chevron suffered the most significant profit decline, with an adjusted profit of $3.627 billion in Q3—a 20% year-on-year drop. Nevertheless, its production surged 21.6% year-on-year, and profits from its U.S. downstream business soared 337% year-on-year. The company maintained robust cash flow, with free cash flow increasing 3.7% year-on-year in the first three quarters.
Bp recorded an underlying replacement cost profit of $2.21 billion in Q3, a 3% year-on-year decrease. Its customers & products division stood out with a 350% year-on-year profit growth. bp also demonstrated effective cost control, cutting capital expenditures by 25.6% year-on-year, while its natural gas and low-carbon energy segment continued to contribute core profits.
The primary causes of the profit declines are lower year-on-year oil prices and rising exploration and development costs. However, most companies have achieved year-on-year production growth and improved cash flow, with downstream and new energy businesses emerging as new growth drivers. The industry is hedging cyclical risks through production expansion, efficiency improvements, and business diversification. Given these trends, do you believe international oil majors can achieve profit recovery in Q4?