Big Oil expects big windfall in build-up to week of earnings reports

The decline in commodity prices in the latter part of last year points to a sharp drop in profit in the fourth quarter, compared with the third.

Earnings reports in Europe have been mixed so far this reporting season, with just 46% of companies surpassing expectations, according to Bloomberg Intelligence. That has not halted the equities rally, which has taken its cue more from macroeconomic developments.

Europe’s mild winter may have calmed the worst fears about energy cost inflation, but there is no question 2022 was a blowout year for oil and gas majors, as Shell’s record-beating results last week showed. The company rewarded shareholders with a 15% increase in the dividend and a $4bn (€4bn) buyback.