Following a period of declining profits due to lower oil prices and reduced gas demand since 2022, the world’s largest oil and gas companies are experiencing renewed growth.
According to AltIndex, the top ten global oil and gas companies generated over $2.5 trillion in revenue in the year leading up to July 2024, marking a 9% increase from the previous year.
Chinese Firms Lead Revenue Growth
While profits remain below 2022’s peak levels, major players like China’s Sinopec and PetroChina, along with US giants ExxonMobil, Chevron, Phillips 66, Marathon Petroleum, and Valero, and European leaders BP, Shell, and TotalEnergies, have reported robust financial results for 2024. Despite a drop in oil prices, these ten companies achieved significant revenue, surpassing $2.5 trillion, up 9% year-over-year.
There are notable differences in revenue growth among regions. Chinese companies led the way, with Sinopec and PetroChina achieving an 18% year-over-year increase—six times higher than their US counterparts. Sinopec and PetroChina reported revenues of $441 billion and $425 billion, respectively.
In contrast, US firms like ExxonMobil, Chevron, Phillips 66, Marathon Petroleum, and Valero saw an average revenue increase of 6%, with Phillips 66 leading at 11.2%. Chevron and ExxonMobil reported growth rates of 5.3% and 5.5%, respectively.
European firms BP and TotalEnergies saw smaller revenue increases of 2.6% and 3.7%, respectively. Shell, however, experienced a 1% decline in revenue.
Investor Sentiment Mixed
Despite revenue growth, investor sentiment remains uncertain. Seven of the ten largest oil and gas companies have seen their stock values drop year-to-date. Chevron experienced the steepest decline, losing $28 billion in stock value, more than BP, Shell, and Phillips 66 combined.
Conversely, Chinese companies Sinopec and PetroChina increased their stock values by around $23 billion. ExxonMobil stands out as the best-performing stock of 2024, with a 13% increase in stock price, adding over $100 billion to its market value.
