South Africa

Trading Day – Oil giants post record profits

• 31 October 2022

ExxonMobil experienced a surge in natural gas exports, leading to the highest profit in its 152-year history with a net income of $19.7 billion.

Chevron also reported the second-best quarter in its history, with a net income of $11.2 billion.

US markets ended the week in the green, as the S&P 500 closed 2.5% higher and the Nasdaq rose 2.9%.

The Nikkei 225 is up 1.8% in early morning trade, while the Hang Seng is slightly down 0.2%.

In local news, MTN Nigeria posted a healthy 22% increase in earnings per share of N13.20.

Here is the biggest news of the day.

  • ExxonMobil profits beat expectations on the back of a surge in natural gas exports. The company posted the highest profit in its 152-year history, with a net income of $19.7 billion. Third-quarter profit per share came in at $4.68, far ahead of analyst estimates of $3.89.
  • Chevron profits soar. The company reported a net income of $11.2 billion for the third quarter, its second-highest quarter ever. This is equivalent to a profit per share of $5.78, well ahead of analyst estimates of $4.86. Chevron’s return on capital jumped to 25%.
  • US GDP rebounds in the third quarter. Real gross domestic product (GDP) increased at an annual rate of 2.6%. It follows the two consecutive quarters of negative GDP growth the country experienced in the first half of the year.
  • MTN Nigeria posts a healthy increase in earnings. Earnings per share increased 22% to N13.20, while total profit after tax was N269 billion. Mobile subscribers grew 9.7% to 74.1 million, while active fintech subscribers jumped 68.7% to 11.2 million. There are 1.8 million active MoMo wallets. MTN also grew its Capex by 45.2% to N379 billion.
  • Balwin Properties reports a big increase in earnings. Revenue for the half-year period ended August 2022 increased by 20% to R1.6 billion, while earnings per share (EPS) jumped 48% to R0.37. This was in line with the increase in total profit to R173 million. Net asset value (NAV) per share also grew 11% to R7.71. The company declared an interim dividend of R0.10 per share.
  • Finbond Group extends losses. Headline losses per share (HLPS) for the half-year period ended August 2022 declined 36% from R0.06 to R0.08, despite revenue increasing 19% to R955 million.
  • BHP Group non-executive director, John Mogford, retires following the completion of the divestment of the company’s oil and gas assets to Woodside Energy.

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