Shares of major oil companies were modestly higher on Thursday after a batch of quarterly earnings reflected the fourth quarter's deteriorating market conditions but still managed to largely beat analysts' expectations.
The Amex Oil Index (XOI: 1,180.26, +15.99, +1.4% ) was up 0.6% to 1,171.20 points as crude for March delivery fell 1% to $57.56 a barrel. The Amex Natural Gas Index (XNG: 461.31, +1.80, +0.4% ) was off 0.2% to 458.52 points as natural gas reversed course and fell 2.6% to $7.39 per million British thermal units.
The Philadelphia Oil Service Index ($OSX 196.37, +0.28, +0.1% ) dropped 0.7% to 194.80 points. Natural-gas prices took a turn for the worse after government data showed that U.S. stockpiles of the commodity fell less then expected.
The Energy Department said natural-gas inventories fell 186 billion cubic feet for the week ended Jan. 26. Fimat USA expected a decline of 228 billion. Total supplies now stand at 2.571 trillion cubic feet, up 152 billion cubic feet from the year-ago level, and 454 billion cubic feet above the five-year average, the government data said. See full story.
The busy earnings schedule kicked off with industry giant Exxon Mobil Corp. (XOM: 74.55, +0.45, +0.6% ) reporting fourth-quarter net income fell 4% to $10.3 billion or, $1.76 a share, from $10.7 billion, or $1.71, in the year-earlier period. Revenue fell to $90 billion from $99 billion.
Analysts polled by Thomson Financial expected to see profit of $1.51 a share on revenue of $100 billion. The shares were last down 0.2%.
Royal Dutch Shell (RDS.A 0.00, 0.00, 0.0% ) shares rose 1.4% after the company reported a 21% rise in fourth-quarter profit, with higher oil prices and production offsetting the impact of diminished output in Nigeria and falling refining margins. See full story.
Shell said its profit during the quarter rose to $5.28 billion, leading to a record annual profit of $25.44 billion. Excluding the impact of energy-price changes on unsold inventories, asset sales, tax benefits and valuing derivatives, the Anglo-Dutch oil giant would've earned $5.5 billion, topping analyst forecasts by around $200 million.
Valero Energy Corp. (VLO 56.12, +1.84, +3.4% ) shares climbed 2.9% after the independent refiner said fourth-quarter earnings fell to $1.11 billion, or $1.80 a share, from $1.35 billion, or $2.06 a share, but still soared past Wall Street's estimates.
The latest results include a pre-tax gain of $196 million, or 21 cents, related to an asset sale. Excluding items, the company earned $987 million, or $1.59 a share, in the latest quarter. Operating revenue fell in the latest three months to $19.79 billion from $25.89 billion in the same period a year earlier.
The average estimate of analysts polled was a profit of $1.37 a share in the December period.
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