Comparing revenue growth

Here, we’ll discuss how our four global integrated energy companies fared in terms of revenue growth in 1Q15.

In 1Q15, only YPF (YPF), the Argentina-based integrated energy company, grew revenues over 1Q14. The other three, ExxonMobil (XOM), BP (BP), and Royal Dutch Shell (RDS.A) recorded a 1Q15 revenue decline compared to the corresponding quarter last year.

YPF’s Revenues Grow as Fellow Integrated Companies See Declines

YPF is the leader

YPF (YPF) recorded a 13% 1Q15 revenue growth compared to the year-ago quarter. Its 1Q15 revenue was $34.7 billion versus $30.6 billion a year earlier. By the end of its latest quarter ending March 31, 95% of YPF’s total revenues were from Argentina. 1Q15 revenues from downstream activities increased 8% over 1Q14, while upstream activities increased 25%. The reasons why YPF’s upstream revenues increased include higher volume and higher energy price realizations in its domestic market in Argentina.

The laggards

ExxonMobil’s (XOM) 1Q15 revenue declined 37% to $59.2 billion from $93.8 billion a year ago. Its 1Q15 revenues from downstream activities decreased 38% from 1Q14, while chemicals and upstream activities decreased 30% and 36%, respectively, during this period. The company generated 36% of its 1Q15 revenues from the US, while the rest of the world accounted for the other 64%. In comparison, Chevron’s (CVX) revenues decreased 38% in 1Q15 over 1Q14.

ExxonMobil makes up 1.9% of the SPDR S&P 500 ETF (SPY). It also makes up 21.3% of the iShares US Energy ETF (IYE).

Royal Dutch Shell (RDS.A) recorded a 40% 1Q15 revenue decline compared to the year-ago quarter. Its 1Q15 revenue was $65.7 billion versus $109.7 billion a year earlier. Its 1Q15 upstream and downstream revenues decreased 40% each over 1Q14. Royal Dutch Shell makes up 4.6% of the iShares Global Energy ETF (IXC).

BP (BP) recorded a 41% 1Q15 revenue decline compared to the year-ago quarter. Its 1Q15 revenue was $54.2 billion versus $91.7 billion a year earlier. Its 1Q15 refining and marketing (or downstream) revenues decreased 43% from 1Q14, while exploration and production (also called upstream) revenues decreased 22%. In 1Q15, the US accounted for 33% of its total revenues.

We’ll look at the earnings growth figures of these companies in the following section.

Latest articles

German chip maker Infineon Technologies has reportedly raised 1.55 billion euros (~$1.74 billion) in capital by selling its shares to fund its acquisition of Cypress Semiconductor (CY). Infineon has sold ~113 million new shares at 13.70 euros each.

As of June 18, Dunkin’ Brands (DNKN) was trading at $80.07, an 8.9% rise since reporting its first-quarter earnings on May 2. Also, DNKN was trading at a premium of 29.8% from its 52-week low of $61.69 and a discount of 1.6% from its 52-week high of $81.40.

19 Jun

Are Lower Oil Prices Weighing on ExxonMobil Stock?

WRITTEN BY Maitali Ramkumar

ExxonMobil (XOM) stock has fallen 7.1% in the second quarter so far. Let's review ExxonMobil's stock performance in comparison to oil price changes and equity market movements in the quarter.

19 Jun

As Facebook Unveils Libra, MSFT and CRM Join a Blockchain Group

WRITTEN BY Mayur Sontakke, CFA, FRM

On June 18, Facebook (FB) launched Libra, its own cryptocurrency. On the same day, CoinDesk published another piece of blockchain news that didn’t receive as much fanfare as Facebook’s Libra news. Was the timing a coincidence? We think not.

Uber Technologies (UBER) has picked Melbourne as another test site for its flying taxi service known as UberAir. The Australian city is the first international test site Uber has chosen for its flying taxi service. The addition of Melbourne brings the number of test locations Uber has picked for its UberAir service to three.

Lyft (LYFT) and Uber Technologies (UBER) are pushing back against California legislation that would require them to recognize their drivers as employees rather than independent contractors. The legislation would require companies like Lyft to give their drivers the compensation and benefits spelled out under California’s employment regulations.