The statements of a number of major oil companies for the first quarter of 2016 will be the weakest in many years, according to the estimates of analysts surveyed by Bloomberg. In particular, the BP will show the first quarterly loss since the second quarter of 2010, when the Gulf of Mexico exploded oil platform company, which cost her $17 billion quarterly loss.
Royal Dutch Shell, which will report in early may, is likely to show the weakest quarterly results in over 10 years. The largest oil company in the world, ExxonMobil will show the weak reporting for more than 20 years, and quarterly profit, Total is at its lowest level since 2001, experts predict. Chevron second quarter in a row, will report about the losses, they believe, in the last quarter of last year, the company reported a loss of $590 million
One reason for the weak results of the companies are their high running costs. Although the company has frozen salaries, had layoffs and delayed the implementation of some projects, it is still not enough to bring costs into line with the fallen oil prices, Bloomberg says Barclays analyst Lydia Rainforth.
For 2016 the company has planned to further reduce costs. BP wants to cut costs by $3.4 billion (by 2017 costs compared with the year 2014 it is planned to reduce to $7 billion). The cost of Shell in 2015 fell by $4 billion, and in 2016 the company plans to cut costs by $3 billion. However, to compensate for the loss of income from sagging oil they are unlikely in the short term — the cost of production per barrel is still 2-3 times higher than in the previous period of low oil prices in the first half of the 2000s.
This is clearly seen if you compare the cost of production per barrel of oil with the cost of 2005, when the average price of a barrel was below $60. In 2015 the average price of a barrel of Brent was $53,6. Cost Shell for the production of a barrel of oil in 2015, according to Barclays research March, amounted to us $14.7 and 10 years ago they stood at $6 per barrel. BP costs per barrel in 2015 and 2005 was $10.4 and us $3.6 respectively.
According to Philippe Hladek, Intellegence analyst Bloomberg, the oil company did not control the growth of costs that were unreasonably inflated in the period of high oil prices. Rainforth from Barclays believes that will take three years to bring costs into line with new market realities.
In the first quarter of 2016, the average price of a barrel of Brent crude was $35.21 per. While January oil was significantly higher during trading on 22 April on the ICE Futures Europe exchange Brent crude oil as of 16:00 MSK was $44,87. Of oil increased on expectations that the countries-manufacturers will be able to agree to freeze production and also due to the reduction in US production.