Business
BP and Shell vs Exxon and Chevron: The Mystery of the Big Guys’ P/E Spread
Last year, global oil and gas companies boomed.
BP
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are all based in London, see share prices rise about 40% by 2022 and trade at five times forward earnings. based in the United States
ExxonMobil
grew by almost 80% and traded at almost 10x earnings, while
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up 50% and trading at 11x.
Why is there such a gap? Many blame the surprise profit tax. All the oil giants celebrate the rise in oil prices after Russia’s invasion of Ukraine. While the prices have dropped, they are still at a sizable profit-making level. However, European governments are reaping some of those benefits by taxing oil producers to subsidize high energy costs for consumers.