The decline of profitability of the oil refining business around the world has negatively affected profit of the biggest oil companies, reported Financial Times newspaper.
From July to September 2013 profit of Royal Dutch Shell company dropped by 32% to $4.5 billion against the same period in 2012 considering one-time factors.
In quarter 3, 2013 net profit of the world biggest oil and gas company Exxon Mobil totaled $7.87 billion or $1.79 per share against $9.57 or $2.09 per share during the same period in 2012.
In quarter 3, 2013 the similar index of Total SA, the second biggest European oil producing company, dropped by 19% against the same period last year to 2.72 billion Euro.
Among the reasons of poor financial indexes all three companies mentioned excessive capacities in the oil refining industry and poor demand in gasoline and diesel fuel in the developed countries.
The experts of the International Energy Agency (IEA) said that the problem is especially serious in Europe. Despite reduction of oil refining capacities by 1.7 million barrels a day since 2008, this year demand in the products of oil refining in the region will total 13.5 million barrels a day, down 2 million barrels against 2008.
Construction of oil refineries is in progress in Asia and Near East. According to the IEA forecasts, in 2013 oil refining capacity in the world will increase by 1.26 million barrels a day, of which 730,000 barrels will fall to China and 531,000 to the Near East.
This tendency will lead to reduction of profitability of the oil refining business.
In quarter 3, 2013 Shell’s profit in the oil refining and oil products sale decreased by 48.6% against the same period last year to $892 million, not considering the one-time factors. The similar index of ExxonMobil dropped by $2.6 billion to $592 million.
In quarter 3, 2013 Total’s profit in this section decreased by 42% against the same period last year to $330 million.
The situation in refining is difficult now, said Financial Director of French company Patrick de la Chevardye. Profitability is low and we still have problems with excessive capacities,”—0—
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