Friday, 10 Oct 2025
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
logo logo
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
  • 🔥
  • Trump
  • VIDEO
  • House
  • White
  • ScienceAlert
  • Trumps
  • Watch
  • man
  • Health
  • Season
Font ResizerAa
American FocusAmerican Focus
Search
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
Follow US
© 2024 americanfocus.online – All Rights Reserved.
American Focus > Blog > Economy > Big Oil bleak on refining profits going into 2025
Economy

Big Oil bleak on refining profits going into 2025

Last updated: January 31, 2025 7:47 pm
Share
SHARE

Big Oil executives are facing a challenging outlook for refinery profits in the near future, as major players like Chevron, Exxon Mobil, and Shell reported fourth-quarter earnings that were significantly impacted by a downturn in fuel production margins. This trend is attributed to an increase in global refining capacity in 2024, combined with sluggish demand growth, putting pressure on refining margins across the industry.

Chevron experienced a 4% decline in shares after reporting a loss in its refining business for the first time since 2020, missing Wall Street’s profit estimates. Chevron CEO Mike Wirth acknowledged the tough fourth quarter, stating that the refining downturn was a significant factor in the company’s performance. Wirth emphasized the importance of focusing on what the company can control to bounce back, including lighter scheduled maintenance for refineries in the coming year.

Exxon Mobil also saw a 2.5% drop in shares after reporting a 75% plunge in adjusted earnings from refining compared to the third quarter. Chief Financial Officer Kathryn Mikells highlighted the pressure on the refining business from additional fuel supply entering the market due to new refineries opening globally. Despite these challenges, Exxon Mobil beat profit estimates with increased production from the Permian basin and Guyana.

Shell, a UK-based company, reported a nearly halved fourth-quarter earnings, partly due to weaker refining margins. While Shell has no plans to exit the refining business, the company does not intend to expand either. Shell sold its refining and chemicals hub in Singapore last year and plans to shut down another plant in Wesseling, Germany.

Independent refiners like Phillips 66 and Valero also faced significant challenges, with profits plummeting and refining margins dropping in the fourth quarter. Phillips 66’s profit fell drastically, while Valero’s refining profit dropped by 73%.

See also  McKesson Corporation (MCK): A Bull Case Theory

Looking ahead, limited capacity additions beyond 2025 may help support refining margins in the long term. Valero CEO Lane Riggs mentioned that two U.S. refineries are set to close this year, which could impact the industry. Additionally, concerns over U.S. President Donald Trump’s threats to impose tariffs on crude imports from Canada and Mexico could raise costs for U.S. refiners.

Investors are closely watching for fourth-quarter results from French oil major TotalEnergies on Feb. 5 and British oil producer BP on Feb. 11. BP has already warned of a potential decrease in profit quarter-on-quarter due to a drop in refining margins and the impact of turnaround and maintenance activities.

In conclusion, the refining industry is facing significant challenges in the current market environment, with major players grappling with declining profits and margins. The road ahead may be tough, but strategic decisions and a focus on operational efficiency could help companies weather the storm and emerge stronger in the long run.

(Note: This article has been rewritten based on the original content provided by Sheila Dang and Shariq Khan, with a focus on key points and insights from the original piece.)

TAGGED:bigbleakoilprofitsrefining
Share This Article
Twitter Email Copy Link Print
Previous Article Future bandages could be armed with nanoflowers
Next Article Jamie Raskin Blasts Trump Over FBI Purge
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Posts

Scientists ‘3D Print’ Material Deep Inside The Body Using Ultrasound : ScienceAlert

Revolutionizing Biomedical Technology: 3D Printing Inside the Body Using Ultrasound Researchers in the United States…

May 18, 2025

Dolly Parton Remembers Late Husband Carl Dean, Says She’ll Always Love Him

Dolly Parton I'll Always Love Carl Published March 14, 2025 5:45 PM PDT Dolly Parton…

March 14, 2025

FBI Responds to Yehuda Miller and ‘s FOIA Request on Ray Epps — and It Only Raises More Questions |

The FBI exhibited a notable interest in Ray Epps following the January 6 protests—until he…

May 9, 2025

Mystery man leaving jugs of urine in Oregon recycling bins marking new territory, terrorized locals say

The Portland Pisser Strikes Again: Mysterious Urine Attacks Continue in Oregon The notorious Portland Pisser…

June 20, 2025

Vampire-obsessed pedo allegedly sexually abused 2 young girls in NYC school for years — even filming child porn in classrooms: suit

A lawsuit has been filed alleging that a left-wing, vampire-obsessed pedophile sexually abused two young…

February 9, 2025

You Might Also Like

Should You Buy Novartis Stock Before October 28?
Economy

Should You Buy Novartis Stock Before October 28?

October 10, 2025
I’m a Financial Advisor: People Always Regret Doing These 5 Things With Their Roth IRA
Economy

I’m a Financial Advisor: People Always Regret Doing These 5 Things With Their Roth IRA

October 10, 2025
This Analyst Just Hiked Their UnitedHealth Stock Price Target by 50%. Should You Buy UNH Now?
Economy

This Analyst Just Hiked Their UnitedHealth Stock Price Target by 50%. Should You Buy UNH Now?

October 10, 2025
Why Is Wolfspeed Stock Soaring Today?
Economy

Why Is Wolfspeed Stock Soaring Today?

October 10, 2025
logo logo
Facebook Twitter Youtube

About US


Explore global affairs, political insights, and linguistic origins. Stay informed with our comprehensive coverage of world news, politics, and Lifestyle.

Top Categories
  • Crime
  • Environment
  • Sports
  • Tech and Science
Usefull Links
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA

© 2024 americanfocus.online –  All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?