Houston, TX – (StockNewsDesk) – 10/31/2014 — Oil giants Exxon and Chevron Corporation posted better than expected profits this quarter. Profits of both the companies increased from refining activities and the fall in crude oil prices. Crude oil prices slumped nearly 25% as a result of which the refining business grew nearly fourfold for both companies. In Chevron’s case, production from new oils was below expectations as a result of which the profit from that segment was a bit lower than expectations.
EXXON: Profit Rises, Revenue Falls – Better Than Estimates
The share price of Exxon is up by 1.5%. It has bounced back from its major support level of $90 and is currently approaching $97. Once it crosses $97 distinctively, then it might cross the $100 mark with ease. Analysts have recommended a Strong Buy on this stock.
Refinery earnings from Exxon increased 73%, which contributed 2.5% of the total profit percentage. Production of the company declined 4.7%, which pushed profits from the upstream segment, 4.4% towards the downside. On a consolidated basis, Exxon earned $8.07 billion or $1.89 a share while revenue declined nearly 4% to $107.5 billion. This was well above profit estimates of $1.71 a share and revenue estimates of $105.5 billion. On the buy-back front, Exxon bought back $3 billion in stock.
Exxon has major projects in line. It has started pumping oil & gas in Canada and gas-export project in Papua New Guinea. The company also had plans to drill and explore for oil reserves in the Arctic from Russia. However, this may not go as planned because of the sanctions imposed by the US on Russia.
CHEVRON: Profit Eclipses Estimates, Revenue below Expectations
Shares of Chevron Corporation gained 1% after reporting better than expected numbers. The stock price of the company took support at $110 levels and is now approaching $120. Once it crosses $120 with volume, the target would become $130.
Chevron Corporation’s profit increased by 13% and posted income of $5.59 billion or $2.95 a share, compared to earlier earnings of $4.95 billion or $2.57 a share. The revenues declined by 6.5% to $55 billion. Profit figures were better than expectations of $2.55 a share while revenue disappointed when compared to the Street’s expectation of $58 billion. In the third quarter, Chevron bought back share worth $1.25 billion. Currently there are ongoing projects in Bangladesh, Australia and Gulf of Mexico.