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Berger: Is it safe to get back into oil majors?
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The price of oil may have fallen by around 50% over the last six months but this earnings season is revealing the remarkable resilience of the oil majors. Exxon Mobil, for example, came out with annual profits only slightly down. The firm's EPS was USD 1.56 versus USD 1.34 expected.
Of course the oil majors have not emerged completely unscathed from the oil price crash, BP wrote down USD 3.6 billion of assets to reflect the lower oil price. However, in the long term these large firms may find themselves in a leaner and meaner state having cut costs. Exxon Mobil has cut its costs by around 18% for example.
Serge Berger, experienced equities trader, give us his overview of the oil majors results this earnings season and picks out what investors need to know.