Energy Companies’ Net Income Fell 67% in 2-Q ‘08.
On September 25, the Energy Information Administration of the U.S. Department of Energy reported that 18 major energy companies reported a 67% decrease in net income relative to the second quarter of 2008. The fall represents a 62% decrease relative to the second-quarter average for 2004 through 2008, it reported.
Also, returns on sales (net income รท revenue) decreased from 7.3% to 4.7% in the second quarter of 2009 due to the 67% decrease in net income.
According to the report, the effects of higher worldwide production of crude oil and natural gas from these companies and European and Asia/Pacific refining margins were “overwhelmed” by the effects of lower oil and natural gas prices, worldwide refinery throughput and domestic refining margins, leading to lower revenues and net income.
“Upstream capital expenditures by these companies declined but by much less than the fall in net income, while capital expenditures for refining/marketing increased slightly,” the agency reported.
How about a stimulus package for these poor guys?
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