Oil companies’ net profit increased by 73.7 percent to $ 116.7 billion. Royal Dutch Shell was the oil company that achieved the highest profit and revenue last year
The total revenue of the world’s 12 largest oil companies has increased by 19.5 percent year on year to $ 1 trillion, 693 billion.
According to the data collected by the AA correspondent’s 12 oil companies from the balance sheets, the total net profit and income of American ExxonMobil, Chevron, ConocoPhillips, Halliburton, Schlumberger and Baker Hughes, Dutch Royal Dutch Shell, British BP, French Total, Italian Eni, Russian Rosneft and Norwegian Equinor In 2018, it increased significantly compared to the previous year.
Last year’s total net profit increased by 73.7 percent compared to the previous year and reached 116.74 billion dollars. These companies had a net profit of $ 67.22 billion in 2017.
Moreover, 12 oil giants in 2017, 1 trillion 417 billion dollars in total revenues of $ 1 trillion to $ 693 billion in the last year rose 19.5 percent.
THE HIGHEST PROFIT AND INCOME IN SHELL
Last year, the biggest profit among the oil giants was the Royal Dutch Shell with $ 23.35 billion. ExxonMobil with $ 20.84 billion and Chevron followed with $ 14.82 billion.
In addition, last year, the company with the highest total revenue of $ 388.4 billion was still Shell. This was followed by ExxonMobil with $ 298.76 billion in total revenue and $ 290 billion in revenue.
The rise in net profits and revenues of oil companies was driven by rising crude oil prices in the global market.
The price of the most widely used Brent crude oil in the world increased by 31.5 percent year on year to $ 71.19 a barrel last year. In 2017, Brent oil had an average of $ 54.15 a barrel.
US West Texas (WTI) crude oil crude oil price rose from $ 50.79 to $ 65.06 in the period in question, up 28.1 percent.
THE EFFECT OF SUPPLY AND LOSS OF PRODUCTION INTERRUPTION
Moreover, concerns over the lack of supply in the global market before US sanctions on Iran began to be reinstated on November 5th led to the price of Brent oil above the end of September from mid-October to mid-October.
The rise in oil prices was due to the Organization of Petroleum Exporting Countries (OPEC) and Russia’s end of production cuts since the end of 2016.
Under the agreement signed by OPEC and Russia on December 7, 2018, the decision to cut total oil production to 1.2 million barrels per day in the first 6 months of 2019 indicates that oil prices may increase this year.
On the other hand, on Friday, February 22, Brent oil’s barrel climbed to $ 67.73 and the WTI-type oil had climbed to $ 57.81, the highest level in the last three months.