Oil company revenues benefit from rising crude oil

The increase in oil prices triggered the income of listed oil companies in the third quarter of 2021, with increases of more than 50% compared to the same period of 2020.

From a basket of 10 oil companies, they accumulated revenues in the third quarter of 2021 for 452,187 million dollars, this is an increase of 176,468 million additional to the income of the same period of 2020 of 275,719 million.

The largest increase in revenue in the third quarter was from the Italian Eni, which went from 12,076 million dollars in September 2020 to the 22,102 million reported in the same quarter of this year, this is 83% more.

The American Exxon Mobil had an increase in its income of 82.9%, from 24,451 to 44,710 million dollars in the third quarter. Chevron went from 46.199 million to 73.786 million dollars, a 59.7% increase.

The third largest increase in revenue was from France’s Total Energies, which rose 80.3% from $ 27,217 million to $ 49,070 million in September. The oil company, Saudi Aramco, went from 60.958 million dollars in September 2020 to 108.102 million, an increase of 77.3 percent.

The Brazilian Petrobras, increased revenues 76.9% in the third quarter of 2021 with 23,255 million dollars. For its part, Petróleos Mexicanos (Pemex), which is not listed on the Stock Exchange, reported revenues of 18,946 million dollars, an increase of 63.3% compared to the third quarter of 2020.

British Petroleum gained 37.5% to $ 36.174 million, while the Dutch Royal Dutch Shell entered $ 60.044 million and advanced 36.4% in the quarter.

Amin Vera, deputy director of Economic Analysis at Black Wallstreet Capital, said that “the reports were positive and even exceeded expectations, improving income, operating flows and profit due to the increase in the price of oil.”

David Medina, independent Economic and Financial Analyst, explained that “in 2020 economic activity in general stopped due to the Covid-19 pandemic, with which we saw falls in oil prices, in 2021, the reopening and economic recovery it boosted the demand for oil as everyone needs oil, from transporters to energy companies ”.

Double digit advance

The price of oil rose to double digits. North Sea Brent gained 91.75%, from $ 40.95 per barrel in September 2020 to $ 78.52 at the end of the third quarter of 2021.

A barrel of West Texas Intermediate (WTI) went from 40.22 to 75.03 dollars a barrel, an increase of 86.55 percent. The Mexican export mix increased 91.95% from 37.12 to 71.25 dollars per barrel.

The increase in prices has not stopped, because so far in 2021 the profit for Brent is 59.54%, that of WTI 68.67% and the Mexican mix 61.6 percent.

Amin Vera stated that “the price of a barrel is at a point of high sensitivity to any change in supply, where any catalyst can generate a very drastic rise or fall”.

David Medina considered that inflation, as well as conflicts with supply chains, would be some of the factors that would be generating pressure for oil prices and for oil companies in the short term.

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