In a quarter where oil prices were at their strongest levels since early 2015, the oil industry largely reported a healthy bump in revenues and profits. Investors and institutions had anticipated this, expecting strong results, but although numbers were healthily in the black all around, not everyone lived up to expectations.
The European supermajors once again performed strongest. Total, once not even considered a supermajor, continued its streak of impressive results, having eclipsed BP and Chevron in net profits for the third consecutive quarter. With its quarterly oil and gas production rising by 9% y-o-y to a new record high of 2.72 mmb/d, Total expects its strong year to continue, now projecting a full-year upstream growth of 7%, firmly entrenching its place within the Big Five. BP saw a quadrupling of its net profits, shrugging off concerns from investors that its US$10.5 billion acquisition of BHP Billiton’s American shale assets would dent its cash flow. The firm said it is on track to return to ‘its former size’ by the early 2020s, while making good progress on its financial settlement of the Deepwater Horizon incident.
Shell’s net profits eclipsed its rival ExxonMobil’s for a fifth consecutive quarter, almost tripling to US$5.2 billion. This, however, was below analyst expectations; oil prices averaging in the US$70/b level had investors salivating over strong profits and dividends, but Shell managed to assuage some concerns by announcing a US$25 billion share buyback scheme through 2020.
No such appeasement came from ExxonMobil. Net profits did improve by 18%, but nowhere near the 50% jump in crude oil prices over the period. Crucially, upstream production also fell – to 3.6 mmb/d, the lowest level in more than 20 years – while more than US$600 million was spent to upgrade refineries in France, Canada, Texas and Saudi Arabia, dragging down profits at the previously stellar downstream division. ExxonMobil had pre-warned the market of results that would be ‘well below market expectations’, but the market still punished the stock, sending its down 3% in the immediate aftermath of trading. Expectations were also missed at Chevron, but oil production rising by 2% and a modest US$3 billion stock buyback mollified the situation.
It might have been a mixed session for the supermajors, but the rest of the industry is reaping rewards. Chinese state oil firms reported record profits, as did India. Crucially, Halliburton and Schlumberger also reported strong revenue and profits, sparking hope of the service sector staging a recovery after the past challenging three years.
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Already, lubricant players have established their footholds here in Bangladesh, with international brands.
However, the situation is being tough as too many brands entered in this market. So, it is clear, the lubricants brands are struggling to sustain their market shares.
For this reason, we recommend an impression of “Lubricants shelf” to evaluate your brand visibility, which can a key indicator of the market shares of the existing brands.
Every retailer shop has different display shelves and the sellers place different product cans for the end-users. By nature, the sellers have the sole control of those shelves for the preferred product cans.The idea of “Lubricants shelf” may give the marketer an impression, how to penetrate in this competitive market.
The well-known lubricants brands automatically seized the product shelves because of the user demand. But for the struggling brands, this idea can be a key identifier of the business strategy to take over other brands.
The key objective of this impression of “Lubricants shelf” is to create an overview of your brand positioning in this competitive market.
A discussion on Lubricants Shelves; from the evaluation perspective, a discussion ground has been created to solely represent this trade, as well as its other stakeholders.Why “Lubricants shelf” is key to monitor engine oil market?
The lubricants shelves of the overall market have already placed more than 100 brands altogether and the number of brands is increasing day by day.
And the situation is being worsened while so many by name products are taking the different shelves of different clusters. This market has become more overstated in terms of brand names and local products.
You may argue with us; lubricants shelves have no more space to place your new brands. You might get surprised by hearing such a statement. For your information, it’s not a surprising one.
Regularly, lubricants retailers have to welcome the representatives of newly entered brands.
And, business Insiders has depicted this lubricants market as a silent trade with a lot of floating traders.
On an assumption, the annual domestic demand for lubricants oils is around 100 million litres, whereas base oil demand around 140 million litres.
However, the lack of market monitoring and the least reporting makes the lubricants trade unnoticeable to the public.
Headline crude prices for the week beginning 11 February 2019 – Brent: US$61/b; WTI: US$52/b
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