First quarter profits of Exxon and Chevron are expected to decline from last year

NEW YORK (Reuters) – Exxon Mobil and Chevron's quarterly earnings per share are expected to be lower than in the first quarter of last year, although their shares outperformed smaller companies with aggressive growth plans in the US. shale oil.

A combination of lower oil prices, weak liquefied natural gas (LNG) portfolios and poor refining margins could hurt oil companies in all countries, badysts say ahead of Friday's announcement .

"We are not looking for an excellent first quarter for the group," said Blake Fernandez, senior research badyst at Piper Jaffray & Co's Simmons Energy.

Nevertheless, the shares of the two companies have performed well in recent months as a result of considerable efforts to stimulate investment in the Permian region, West Texas and New Mexico, where significant allowed the production of US crude oil to break the record of more than 12 million barrels a year. day.

Exxon Mobil Corp shares have increased approximately 20% since the beginning of the year, while those of Chevron Corp have increased by approximately 10%.

Exxon, the world's largest publicly traded oil producer, is expected to earn 69 cents a share, down from $ 1.09 a year ago. Revenues are expected to reach $ 64.8 billion, down 5% from last year, according to Refinitiv Eikon estimates.

Chevron is expected to earn $ 1.30 per share, down from $ 1.90 a year ago, while revenue is expected to rise 1.7% to $ 38.4 billion, according to Refinitiv data.

The weakness of the industry's transportation and chemicals businesses could weigh on earnings in the coming quarters, as these units "could become more difficult in 2019," JP Morgan said in a note on Exxon this month. The bank has a neutral rating on Exxon.

Exxon's fourth-quarter Permian oil and gas production was 300,000 barrels per day; he plans to increase this figure to more than one million bpd by 2024, announced last month.

Chevron made a $ 33 billion offer to take over Anadarko Petroleum to expand its reach. Wednesday, his rival Occidental offered $ 38 billion to Anadarko, thus giving the blow to the first battle for an oil company for several years.

US oil prices have risen more than 40% since the end of last year and refinery margins have improved, which could help larger companies achieve better results, said Fernandez de Simmons Energy, of Piper Jaffray & Co.

"If you get poor results, the stocks could lose value that day, but I think investors will largely be able to fix it," Fernandez said.