Exxon, Chevron Post Historic High Profits In 2nd Quarter

The two largest US oil companies, Exxon Mobil Corp. and Chevron Corp., posted record revenue on Friday (Saturday, July 30, 2022, in Manila), bolstered by surging crude oil and natural gas prices and following similar results for European majors a day earlier, Sabrina Valle reported for Reuters.

Photo Insert: An Exxon refinery in Chicago

The US pair, along with UK-based Shell and France's TotalEnergies, combined to earn nearly $51 billion in the most recent quarter, almost double what the group brought in for the year-ago period.

Exxon outpaced its rivals with a $17.9 billion quarterly profit, the most for any international oil major in history. Chevron, Shell, and Total ran to catch up with Exxon's aggressive buyback program, which was kept unaltered.

The four returned a total of $23 billion to shareholders in the quarter, capitalizing on high margins derived from selling oil and gas. The fifth major, BP Plc, reports next week.

The companies posted strong results in their production units, helped by the surge in benchmark Brent crude oil futures, which averaged around $114 a barrel in the quarter. High crude oil prices can cut into margins for integrated oil majors, as they also bear the cost of crude used for refined products.

However, following Russia's invasion of Ukraine and numerous shutdowns of refineries worldwide in the wake of the coronavirus pandemic, refining margins exploded in the second quarter, outpacing the gains in crude and adding to earnings.

"The strong second-quarter results reflect a tight global market environment, where demand has recovered to near pre-pandemic levels and supply has attritted," said Exxon Chief Executive Darren Woods, in a call with analysts. "Growing supply will not happen overnight."

The results from the majors are sure to draw fire from politicians and consumer advocates who say the oil companies are capitalizing on a global supply shortage to fatten profits and gouge consumers.

US President Joe Biden last month said Exxon and others were making "more money than God" at a time when consumer fuel prices surged to records.

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