POSTED: Wednesday, July 25, 2012 - 12:33pm
UPDATED: Wednesday, July 25, 2012 - 12:51pm
Houston, TX — The world’s largest oil companies are poised to report a drop in second-quarter earnings after crude prices declined for the first time in three years.
Exxon Mobil Corp. (XOM), the world’s biggest oil company by market value, will probably say tomorrow net income dropped 13 percent from a year earlier to $9.3 billion dollars, based on the average of five analysts’ estimates compiled by Bloomberg. Royal Dutch Shell Plc (RDSA), Europe’s top oil producer, is expected to see profit decline 4 percent after adjusting for certain gains and losses.
“We expect earnings to be down and for companies to miss the current consensus,” said Jason Gammel, an analyst at Macquarie Capital Europe Ltd. in London. “The oil price is the single biggest factor, and U.S. gas prices were particularly anemic. The one area that looks good is refining margins.”
Read more  from the Houston Chronicle.