2024 earnings slip for OGJ100, led by commodity price weakness

The OGJ100 companies experienced a widespread drop in earnings for 2024, primarily due to declining crude oil and natural gas prices, along with tightened refining margins.

In 2024, global oil markets experienced softer prices and weaker demand growth, with Brent crude averaging $81/bbl, down from $83/bbl in 2023. OPEC+ supply cuts were countered by rising non-OPEC production and sluggish demand, particularly from China, where economic slowdown and EV adoption hindered demand growth.

Natural gas prices fell across major markets, with North America's Henry Hub averaging $2.25/MMbtu, influenced by high production and mild weather. European TTF averaged $11/MMbtu, and Asia's JKM averaged $12/MMbtu, both down from a year ago.

Meantime, refining margins across major refining hubs softened significantly from their 2022–2023 peaks amid global demand weakness and oversupplied markets, despite temporary boosts from disruptions and maintenance.

Oil & Gas Journal’s look at the leading 100 oil and gas producing companies based outside the US allows for comparison of the size and results of the entities. For many of the national oil companies in the report, though, no such information on assets, revenues, earnings, or capital expenditures is available.

Companies in OGJ100 are grouped by regions according to the location of their corporate headquarters. All financial results in this report are indicated in US dollars. Due to exchange rate variation, results can be significantly affected when translated into US dollars.

Canadian producers

The 2024 average WTI-WCS (Western Canadian Select) differential averaged $14.73/bbl, narrowing from $18.62/bbl in 2023. This primarily reflected the start-up of the Trans Mountain Expansion (TMX) pipeline in second- quarter 2024, combined with stronger US Gulf Coast heavy oil pricing.

WCS at Hardisty increased to $61/bbl in 2024, from $59/bbl in 2023. Condensate at Edmonton fell to $73/bbl in 2024 from $76.6/bbl in 2023. During 2024, the Canadian dollar continued to depreciate slightly against the US dollar, with the average exchange rate dropping to $0.73 per Canadian dollar from $0.74 per Canadian dollar in 2023. This led to increased US-dollar denominated debt for the group.

The combined total revenue of the sample group of 15 leading Canadian oil and gas producers stood at $154.5 billion in 2024, virtually unchanged from 2023. However, net income dropped significantly.

The combined total revenue of the sample group of 15 leading Canadian oil and gas producers stood at $154.5 billion in 2024, virtually unchanged from $154.2 billion in 2023. However, net income dropped significantly to $16.1 billion in 2024 from $20.8 billion in 2023 (a 22.8% decline), primarily reflecting lower realized natural gas pricing, non-cash one-time factors, foreign exchange losses and higher expenses.

The industry remained capital-disciplined but assertive, with total capital spending rising to $19.1 billion in 2024, up nearly 10% from $17.4 billion in 2023. Total oil production rose to 1,239.5 million bbl in 2024 from 1,176.5 million bbl in 2023, a 5.4% increase. Natural gas production increased to 2.4 trillion cubic feet (tcf) from 2.27 tcf. The growth can be attributed to new pipeline capacity via TMX, Oil Sands efficiency gains, and emerging LNG export demand.

In terms of reserves, the Canadian group successfully replaced and even expanded its base. Oil reserves grew to 26.7 billion bbl, from 26.1 billion bbl a year earlier. Natural gas reserves increased to 36 tcf from 33.5 tcf. Suncor’s net earnings in 2024 were $4.4 billion, compared with $6.1 billion in 2023. In 2023, the company recorded a non-cash gain of around $1 billion in the Oil Sands segment as a result of acquiring the remaining working interest in Fort Hills via the purchase of TotalEnergies Canada. This gain was absent in 2024.

Suncor’s consolidated adjusted operating earnings were actually slightly up in 2024 from the prior year, primarily due to increased sales volumes in Oil Sands, E&P, and increased production in Refining and Marketing (R&M), partially offset by lower benchmark crack spreads and lower SCO realizations, increased royalties and increased depreciation, depletion and amortization (DD&A) expense.

In 2024, Canadian Natural Resources reported a net income of $4.46 billion, down from earnings of $6.1 billion in 2023. Net earnings for 2024 included non-operating losses of nearly $1 billion compared with non-operating losses of about $200 million for 2023.

Canadian Natural delivered record annual average production of 1.36 MMboe/d, an increase of 2% from 2023 levels. In December 2024, the company closed the acquisition of Chevron's Alberta assets, including a 20% interest in the Athabasca Oil Sands Project (AOSP) and a 70% operated working interest in light crude oil and liquids- rich natural gas assets in the Duvernay play.

Imperial Oil Ltd. reported net income of $3.49 billion in 2024, down slightly from $3.62 billion in 2023. Full-year upstream production averaged 433,000 boe/d, supported by increased bitumen output—primarily from Grand Rapids production at Cold Lake—and enhanced mine fleet productivity and optimized turnaround at Kearl. Meanwhile, the company’s refining segment faced headwinds due to lower margins.

European companies

According to asset rankings in the 2024 OGJ100, Shell plc maintains its position as the top European oil and gas company by total assets, followed by TotalEnergies SE and bp plc. As with previous years, data on Russian companies remains unavailable due to ongoing disclosure restrictions.

Shell reported net income attributable to shareholders of $16.1 billion in 2024, a decline from $19.4 billion in 2023 and well below the $42.3 billion earned in 2022. Adjusted earnings in 2024 were $23.7 billion, compared with $28.25 billion in 2023. The decrease was mainly driven by lower LNG trading and optimization margins, reduced realized prices, and declining refining margins, along with lower power and pipeline gas margins in Renewables and Energy Solutions.

Shell’s oil production in 2024 remained steady at approximately 550 million bbl, while natural gas output held at 3.09 tcf. Total assets at year-end 2024 were $387.6 billion, down from $406.2 billion the previous year. bp saw a sharp drop in profitability in 2024, reporting net income of $1.2 billion, down from $15.8 billion in 2023, though an improvement from the $1.36 billion loss in 2022.

Capital expenditures held steady at around $16.2 billion, but earnings were pressured by softer commodity prices, weaker refining margins, and underperformance in the gas trading segment. Oil production remained largely unchanged at 426 million bbl, while natural gas output edged up to 2.63 tcf. However, natural gas reserves fell to 14.8 tcf from 17.5 tcf, as production outpaced new discoveries.

TotalEnergies reported net income of $16 billion in 2024, down from $21.5 billion in 2023 and $21 billion in 2022. The decline reflects weaker commodity prices and lower operational margins. The company recorded $14.9 billion in capital expenditures in 2024, down from $17.7 billion in 2023.

Hydrocarbon production remained robust for TotalEnergies, with oil output reaching 537 million bbl and natural gas production totaling 1.91 tcf. The company expanded its oil reserves to nearly 6 billion bbl and gas reserves to 27.6 tcf. With total assets of $285.5 billion, TotalEnergies maintains its position as Europe’s second-largest energy company after Shell. Globally, it ranks as the third-largest LNG supplier.

Latin America producers

Petróleo Brasileiro SA (Petrobras) reported net income of $7.6 billion in 2024, down sharply from $25 billion in 2023. The company attributed the decline primarily to exchange rate fluctuations on debts between Petrobras and its international subsidiaries—an accounting effect that did not impact cash flow. Petrobras’ capital expenditures reached $16.62 billion in 2024, with 84% allocated to exploration and production activities. This marked a 31.2% increase from the $12.67 billion spent in 2023, though it was 10% below the level outlined in the company’s previous 2024– 2028 Strategic Plan.

Petrobras produced 761 million bbl of oil in 2024, a slight decrease from 786 million bbl in 2023. Natural gas output also dipped modestly to 569 bcf from 594 bcf the previous year. However, both oil and natural gas reserves saw a slight increase compared to 2023 levels.

Mexican state energy company Petroleos Mexicanos (Pemex) posted a net loss of $38 billion in 2024, a dramatic reversal from its $460 million profit in 2023. The loss was mainly due to a reduction in Mexican crude oil export volumes, along with increased impairments and higher costs of sales.

Despite financial challenges, Pemex sustained a strong investment pace, with capital and exploration expenditures totaling $14.1 billion—roughly unchanged from the previous year. Oil production declined slightly to 642 million bbl in 2024 from 684 million bbl in 2023, largely due to natural declines in key fields. Natural gas output also decreased to 1.67 tcf, compared with 1.81 tcf the year before.

Among Latin American producers, YPF SA of Argentina delivered a striking financial turnaround. The company’s revenue rose to $19.3 billion in 2024 from $17.3 billion in 2023, while net income swung to a profit of $2.39 billion from a loss of $1.28 billion. Assets expanded to $29.4 billion, and capital spending remained strong at $5.39 billion.

YPF has made a decisive shift toward unconventional resources, focusing heavily on shale oil and gas development in the Vaca Muerta formation. In 2024, about 64% of the company's capital expenditures were allocated to these initiatives. Additionally, YPF is fast-tracking its plans to establish Argentina's first floating LNG export terminal by 2027, with the goal of bringing its gas production to international markets.

Asian companies

PetroChina Co. Ltd. once again tops the OGJ100 ranking for Asia-Pacific companies by total assets, followed by Malaysia’s Petronas and China National Offshore Oil Corp. Ltd. (CNOOC). PetroChina ended 2024 with total assets of $377.2 billion, down from $389.9 billion a year ago.

The company reported revenue of $409.3 billion and net income of $23.9 billion, a slight decline from $25.5 billion in 2023, primarily due to weaker oil and gas prices despite strong production and sales volumes.

Crude oil output remained steady at 942 million bbl, while natural gas production rose slightly to 5.1 tcf. By year-end, Petro- China held 6.18 billion bbl of oil reserves and 72.8 tcf of natural gas reserves.

CNOOC reported total assets of $144.7 billion in 2024, up from $142.1 billion in the previous year. Revenue remained steady at $58.6 billion, while net income rose to $19.2 billion from $17.6 billion, driven by increased production and effective cost control.

Oil output grew to 556 million bbl, and natural gas production reached 873 bcf. The company also expanded its reserves, ending the year with 5.2 billion bbl of oil and 10 tcf of natural gas, underscoring strong reserve replacement efforts.

Petronas generated $66.8 billion in revenue and earned a net profit of $12.1 billion, a decline from $17.7 billion in 2023, primarily due to lower oil and gas prices, asset impairments, and foreign exchange effects. Petronas produced 297 million bbl of oil and 598 bcf of gas in 2024. Data from Indian companies could not be accessed due to website shutdowns at the time this report was being prepared.

Middle East companies

Saudi Aramco’s total assets declined to $646 billion by the end of 2024, down from $662 billion in 2023. Net income fell to $106 billion from $121 billion the previous year, primarily due to lower realized prices and reduced sales volumes across crude oil, refined products, and chemicals. Additionally, a non-cash expense of $1.7 billion was recorded in fourth-quarter 2024.

QatarEnergy saw increases in both assets and revenues in 2024, driven by expanded LNG production under the North Field mega project. However, net profits declined amid weaker gas market prices.