The world’s 12 largest oil companies saw their combined profits drop by $24.9 billion in the first half of 2025, falling to $103.9 billion from $128.8 billion a year earlier, according to industry data. The decline reflects the impact of weaker oil prices on earnings.
The companies — including U.S. majors ExxonMobil, Chevron, ConocoPhillips, Halliburton, Schlumberger, and Baker Hughes; Europe’s Shell, bp, TotalEnergies, and Eni; Norway’s Equinor; and Saudi Arabia’s state-owned Saudi Aramco — reported a collective 19.3% year-on-year profit decline.
- Saudi Aramco posted the largest earnings, at $48.68 billion, down 13.6%.
- ExxonMobil’s profit slipped 15.3% to $14.79 billion, while Shell saw a 30% drop to $9.8 billion.
- TotalEnergies earnings fell 31.2% to $6.54 billion, and Chevron reported a sharp 39.7% decline to $5.99 billion.
- ConocoPhillips reported a modest 1.2% fall to $4.82 billion, while Equinor and bp saw profits slide 13% and 31.9% to $3.95 billion and $3.73 billion, respectively.
- Eni posted $1.99 billion, down 8.3%.
- Oilfield services firms also struggled: Schlumberger reported a 17% decline to $1.81 billion, and Halliburton’s profits plunged nearly 49% to $676 million. Baker Hughes, however, bucked the trend, posting a 6.8% increase to $1.1 billion.
Analysts: Profits No Longer Buoyed by Pandemic-Era Gains
Julien Mathonniere, Oil Market Economist at Energy Intelligence Group, said the decline reflects the fading of extraordinary windfall profits seen after the pandemic and the Russia-Ukraine war.
“The supportive environment in the U.S. — including stimulus measures — has ended, and companies are now facing trade tensions, uncertainty, and cost pressures,” he noted. “Falling demand for oil is also eroding investment appetite in fossil fuels.”
He stressed that oil majors must restructure their strategies to manage risks:
“The most profitable companies will be those that maintain capital discipline, cut spending, and carefully select green transition projects. In a stagnant sector, growth increasingly depends on acquisitions to gain market share.”
Market Outlook: Prices Seen Under Pressure
Mathonniere expects oil prices to remain around $70 per barrel through year-end, with a potential slide below $70 in 2026 as demand recovers but non-OPEC+ supply slows.
Osama Rizvi, Energy & Economics Analyst at Primary Vision Network, also expects prices to stay under pressure in the short term, though low inventory levels may keep the market tight.
“If China halts stockpiling, global demand could drop by 500,000–600,000 barrels per day,” Rizvi said, adding that OPEC+ production cuts — including a 140,000 bpd reduction in July — continue to weigh on earnings but could also support prices if compliance remains strong.
He also flagged the need to monitor U.S. oil output, noting that any production slowdown could ease oversupply concerns and lend support to prices.
Source: Bloomberght/ Prepared by: İlayda Gök