petroleumworld

Oliver L Campbell : ExxonMobil, Royal Dutch Shell,
BP & PDVSA latest financials

ExxonMobil, Royal Dutch Shell and BP have recently published their 3rd Quarter 2009 financial results. The big surprise is that BP's net income was better than the others and fell by only 34%, whereas the others fell by over 60%. BP's better-than-expected results were largely due to an increase of 6% in crude oil production. Shell's earnings were much lower than BP's and its results can only be described as dismal.

The reduction in net income would have been worse but each company has made substantial cost savings in 2009. Shell expects to shed 5,000 jobs as a result of its streamlining.

Net Income 3rd Quarter--$millions

	3rd Qtr 2009	3rd Qtr 2008	% Reduction
ExxonMobil	4,730	14,830	66
Shell	3,247	8,448	62
BP	5,336	8,049	34

Average Realised Price--$ per barrel

ExxonMobil	N/A	N/A	-
Shell	N/A	N/A	% Reduction 43
BP	$62,77	$111.47	44

ExxonMobil do not publish their average sales price. Shell always used to but they have been cagey on this occasion and merely said the average price went down by 43%.

Capital Expenditure--$millions

ExxonMobil	6,493	6,853	% Decrease 5
Shell	7,698	13,212	42
BP	4,983	8,858	44

In addition to their capital expenditure, ExxonMobil purchased $4 billion of their own shares in the third quarter 2009 which shows they foresee no cash flow problems.

The comparison of the first nine months also shows a considerable reduction in earnings. ExxonMobil still had the best absolute results but BP showed a better performance in percentage terms.

Net Income 9 Months--$millions

	2009	2008	% Reduction
ExxonMobil	13,230	37,400	65
Shell	10,557	29,087	64
BP	6,947	16,452	58

PDVSA has just published its accounts for the six months to 30 June 2009. The government take, in comparison with 2008, has gone down some 70%.

Government Take 6 Months--$millions

	2009	2008	% Reduction
Royalties	5,321	11,052
Social development	386	1,824
Contribution to Fonden	-	5,850
Income tax	1,471	6,574
Net income	3,173	9,547
Total	10,351	34,847	70

These figures give the reader an idea of how the economic downturn has affected PDVSA'S results. They require analysis and I expect to prepare some observations on the accounts in the next few days. Meanwhile, we thank PDVSA for producing an extensive document of 83 pages which contains much interesting and useful information.

Oliver L Campbell , MBA, DipM, FCCA, ACMA, MCIM was born in El Callao in 1931 where his father worked in the gold mining industry. He spent the WWII years in England, returning to Venezuela in 1953 to work with Shell de Venezuela (CSV), later as Finance Coordinator at Petroleos de Venezuela (PDVSA). In 1982 he returned to the UK with his family and retired early in 2002. Petroleumworld does not necessarily share these views.

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Petroleumworld News 11/20/09

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