After seeing their profits plunge since 2022 highs due to lower oil prices and a sharp decline in gas demand, the world’s largest oil and gas companies are back on track of growth.
According to data presented by AltIndex.com, the world`s ten largest oil and gas companies have grossed over $2.5 trillion in the 12 months leading up to July 2024, or 9% more than in the same period a year before.
Although their profits are still slightly lower than at the peak levels seen in 2022, the world`s largest oil and gas companies, Chinese Sinopec and PetroChina, US ExxonMobil, Chevron, Phillips 66, Marathon Petroleum, and Valero, as well as European BP, Shell, and TotalEnergies have still reported very strong financial results in 2024. Despite the oil prices falling from extreme highs seen in recent years, these ten industry heavyweights have grossed over $2.5 trillion in revenue in the 12 months ending July, or 9% more than last year.
Chinese Gas Heavyweights Saw 3x Higher Revenue Growth than US Companies
Although the group as a whole saw revenue growth, there are still considerable differences between US, Chinese, and European companies. Although the United States has strengthened its position as a global energy leader, Chinese oil and gas companies saw much bigger revenue growth.
The two largest oil and gas producers in China, Sinopec and PetroChina, reported an 18% year-over-year revenue growth, six times more than their US counterparts, generating $441 billion and $425 billion in revenue, respectively.
The US gas heavyweights ExxonMobil, Chevron, Phillips 66, Marathon Petroleum, and Valero saw an average 6% revenue increase in this period, with Phillips 66 as the leader. Statistics show the revenue of the Houston-based fuel producer increased by 11.2% year-over-year to $148.8 billion, significantly more than Chevron`s 5.3% or ExxonMobil`s 5.5% growth.
European gas heavyweights, UK-based BP and French TotalEnergies, saw even smaller increases of 2.6% and 3.7%, respectively. On the other hand, Shell was the only loser in the top ten group, with its revenue falling by 1% year-over-year.
Investor Sentiment Still Mixed; Seven out of Ten Gas Giants Saw their Stock Values Drop YTD
Although nine out of ten gas heavyweights have seen their revenue grow in the 12 months leading up to July 2024, the investor sentiment toward the sector remained mixed, balancing the need for immediate returns with the imperative to prepare for a lower-carbon future.
Statistics show that seven out of ten of the world`s largest oil and gas companies have seen their stock values drop year-to-date, with the US Chevron being the biggest loser. Over the past nine months, the US gas producer lost $28 billion in stock value, twice as much as BP and Shell and five times more than Phillips 66.
On the other hand, Chinese gas heavyweights Sinopec and PetroChina added around $23 billion to their stock values, but the best-performing gas stock in 2024 is still ExxonMobil. Since the beginning of the year, the stock price of the US company increased by roughly 13%, adding over $100 billion to its valuation.
