The combined profits of the world’s 12 largest oil companies dropped by $24.9 billion in the first half of 2025, falling to $103.9 billion from $128.8 billion a year earlier, a clear impact of lower oil prices and shrinking margins.
US majors ExxonMobil, Chevron, ConocoPhillips, Halliburton, Schlumberger and Baker Hughes, along with Shell, bp, TotalEnergies, Eni, Equinor and Saudi Aramco, posted earnings down 19.3% year-on-year.
The 12 companies had posted a 19.3% drop to $103.9 billion from $128.8 billion a year earlier.
Saudi Aramco remained the most profitable, but its earnings slid 13.6% to $48.68 billion.
ExxonMobil’s profit fell 15.3% to $14.79 billion, while Shell dropped 30% to $9.8 billion. TotalEnergies sank 31.2% to $6.54 billion, Chevron tumbled 39.7% to $5.99 billion, and ConocoPhillips edged down 1.2% to $4.82 billion.
In the same period, Equinor posted $3.95 billion, down 13%, bp reported $3.73 billion, down 31.9%, and Eni earned $1.99 billion, down 8.3%.
Schlumberger reported a 17% drop in profit to $1.81 billion, while Halliburton's earnings fell 48.6% to $676 million. Baker Hughes, by contrast, posted a 6.8% increase to $1.1 billion.
- Low oil prices weigh on companies' profit margins
The fall in earnings reflects the fading of windfall profits reaped during the Covid-19 recovery and Russia-Ukraine war, said Julien Mathonniere, oil economist at Energy Intelligence Group.
“The US tariff drama has created significant uncertainty and cost pressures, potentially reducing overall profitability. In addition, declining oil demand diminishes the incentive to invest in fossil fuels,” he told Anadolu.
He added that resilience, not growth, is driving acquisitions in the sector.
Mathonniere forecasts Brent crude will average around $69 per barrel through 2025 and 2026, with a demand response and slower US shale growth expected to help stabilize prices near that level.
- Prices are expected to remain on downward trajectory
Osama Rizvi, analyst at US-based Primary Vision, said oil prices slipping below $70 per barrel were the main drag on revenues.
Prices are expected to remain pressured in the short term, but low inventories in major consumer regions will keep markets tight, he said.
He warned that if China halts stockpiling, demand could fall by as much as 600,000 barrels per day.
OPEC+ production cuts are also curbing revenue, though improved compliance could support higher prices, Rizvi added.
By Duygu Alhan
Anadolu Agency
energy@aa.com.tr