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Major Events That Affected Chevron and Shell in 3Q17


Nov. 20 2020, Updated 3:45 p.m. ET

Events affecting CVX and Shell in 3Q17

In the previous part, we looked at important events that impacted ExxonMobil (XOM) and BP (BP) in 3Q17. In this part, we will look at events that affected Chevron (CVX) and Royal Dutch Shell (RDS.A). Let’s begin by looking at Chevron.

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Events impacting Chevron

In 3Q17, Chevron posted its 2Q17 and 1H17 results. CVX’s 2Q17 earnings surpassed estimates. For more on this topic, please refer to Chevron Stock Rose 2% on Strong 2Q17 Earnings.

Chevron’s 1H17 results improved from ~-$2.2 billion in 1H16 to $4.1 billion due to an across-the-board rise in its segmental earnings.

The company’s Upstream segment, which reported ~-$3.9 billion in 1H16, rose to ~$2.4 billion in 1H17. This increase was due to rise in crude oil prices. Also, its international upstream operations had positive earnings in 1H17 compared to negative earnings in 1H16. 

Chevron’s Downstream segment’s earnings rose from ~$2.0 billion in 1H16 to ~$2.1 billion in 1H17. To learn about Chevron’s Upstream portfolio, please read Chevron’s Upstream Segment: Is Production Growth on the Horizon?

Significant press releases by Shell in 3Q17

In 3Q17, Shell posted its 2Q17 earnings, which surpassed estimates. For more information, please read Shell Kick-Starts 2Q17 Earnings Season with a Bang.

In 3Q17, Shell experienced a series of events affecting the company stock. At the beginning of the current quarter, Shell announced the purchase of Turritella FPSO for the Stones project in the Gulf of Mexico. In 3Q17, Shell also announced the sale of its stake in Shell E&P Ireland Limited, marking its exit from the upstream business in Ireland. This is in line with its divestment strategy to exit the non-strategic positions. 

During the quarter, Shell also started production at the Gbaran-Ubie Phase 2 project, Nigeria. For more on this topic, please read Why Shell’s Gbaran-Ubie Project Is Vital to Upstream Portfolio.

Move onto the next part to learn how XOM, CVX, Shell, and BP stocks performed in 3Q17 in comparison to the benchmark index.


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