Business

Impact of COVID-19: Revenues of oil giants fell by $ 716.5 billion in 2020

Last year, when there were unprecedented fluctuations in oil prices, companies operating in the sector went through a very difficult period from a financial point of view.

The world’s largest oil exporter originated in China Covid-19 outbreakThe fact that the measures taken to combat the epidemic weakened economic activity after the conquest of a global dimension significantly reduced oil consumption worldwide.

This situation is the Organization of Petroleum Exporting Countries (OPEC) and some non-OPEC producing countries OPEC + group to cut off supply to stabilize oil markets. But in March of last year, Saudi Arabia and Russia did not agree to a production cut, OPEC + countries stopped production cuts and increased production from April 2020.

With this measure, which came at a time when strict quarantine measures were taken to stop the spread of Covid-19 in many countries around the world and the demand for oil dropped significantly, there was a sudden supply surplus in the market and a hefty price. Decrease the oil.

Stock shortages, on the other hand, pushed prices down further and caused oil prices to rise. In April 2020, it reached its lowest level in 21 years.

The price of a barrel of Brent oil, which was trading at $ 66.58 at the beginning of the year, reached its lowest level of the year at $ 17.51 ​​on April 21, 2020. In the US, West Texas Type ( WTI) Raw oilWTI crude oil hit negative levels for the first time on April 20, as contract holders refrained from receiving physical crude deliveries as futures contracts expired in May.

The most used reference worldwide Brent The average price of a barrel of crude oil type crude oil fell from $ 64.16 in 2019 to $ 43.21 in 2020, down 32.7 percent, which negatively affected company balance sheets.

ExxonMobil, Chevron, ConocoPhillips, Halliburton, Schlumberger, Baker Hughes, Total, Royal Dutch Shell, BP, Eni, Equinor, Lukoil, Rosneft and Saudi Aramco The revenues of oil giants like the Covid-19 outbreak decreased by $ 716.5 billion (35 percent) in 2020 compared to the previous year, to $ 1.3 trillion.

The companies in question had generated revenue of approximately $ 2.02 trillion in 2019.

Download the NTV application, find out what’s new

SHELL BECOMES THE COMPANY WITH THE GREATEST LOSS OF INCOME

In this period, Royal Dutch Shell registered as the company with the greatest drop in income. The company’s revenue was reduced by $ 168.9 billion to approximately $ 183.2 billion.

Additionally, BP’s revenue decreased by $ 99.1 billion, Saudi Aramco’s $ 90 billion, and ExxonMobil’s revenue decreased by $ 83.4 billion.

During the period in question, Royal Dutch Shell, ExxonMobil, BP, Total, Eni, Baker Hughes, ConocoPhillips, Chevron, Equinor, Halliburton and Schlumberger reported a total loss of $ 119.2 billion.

Among the oil giants, ExxonMobil was the biggest losing company at $ 22.4 billion. This company was followed by Royal Dutch Shell with a loss of $ 21.7 billion and BP with a loss of $ 20.3 billion.

PROFITS IN 2020 STAY LOW

Russia’s Lukoil and Rosneft and Saudi Arabia’s oil company Saudi Aramco made a total of $ 51.4 billion in 2020.

Saudi Aramco had the largest share of this profit with a total of $ 49 billion. However, the company’s net income in 2020 was about 44 percent lower than its 2019 earnings.

Last year, Rosneft’s net profit was about $ 2.2 billion, down 79.8 percent from 2019.

During this period, another Russian company, Lukoil’s profits fell 97.7 percent to $ 205 million.

FILE: THE SYMBOL OF THE OIL AGE LOSES ITS LIFE

Leave a Reply

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