These oil giants are shedding assets

Some of the industry's largest companies are pruning costs to beef up cash flow.

Vikram Barhat 21 March, 2017 | 5:00PM
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Persistent geo-political uncertainty, supply glut, lower oil prices and shrinking profits have left the oil industry fighting a multi-pronged battle.

The industry's struggle is clearly reflected in the performance of oil-designated indices. On a year-to-date basis, the S&P Global Oil Index is down 6.5% whereas the Dow Jones Commodity Index Crude Oil has fallen 11.9%, compared to a 6.4% gain for the S&P 500, as of March 10.

Unable to grow revenue as consistently as they once did, oil companies are taking some tough measures to cut costs and investments to ride out the crude price slump that's buffeted the business for more than two years.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
BP PLC ADR25.65 USD1.66Rating
Exxon Mobil Corp55.21 USD2.93Rating
Royal Dutch Shell PLC ADR Class B40.81 USD0.82Rating
TotalEnergies SE ADR45.58 USD2.17Rating

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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