Home News Exxon Mobil, Chevron, TotalEnergies and Shell achieved combined revenues of $51 billion...

Exxon Mobil, Chevron, TotalEnergies and Shell achieved combined revenues of $51 billion last quarter, twice as much as in 2021

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All four companies have announced share buyback programs in recent months, taking advantage of the high margins obtained from oil and gas sales.

Exxon beat rivals with a net profit of $17.9 billion, several billion dollars higher than its previous record reported in 2012, which was boosted by asset sales in Japan.

The fifth largest oil producer, BP, will report quarterly results next week.

The companies obtained solid results of the production divisions, helped by the increase in futures contracts for Brent oil, the international benchmark, which in the last quarter had a price of around 114 dollars per barrel.

High oil prices can reduce margins for integrated oil companies, as they also bear the cost of crude oil used for refined products. However, following Russia’s invasion of Ukraine and numerous refinery shutdowns around the world as a result of the coronavirus pandemic, refining margins exploded in the second quarter, outpacing crude oil gains, boosting earnings.

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“The strong second quarter results reflect a tight global market environment, where demand has recovered to near pre-pandemic levels and supply has eroded. The increase in supply will not happen overnight,” Exxon CEO Darren Woods said in a telephone call with analysts.

The results from major oil companies are sure to draw criticism from politicians and consumer advocates, who say oil companies are capitalizing on the global supply shortage to fatten profits and ostracize consumers.

US President Joe Biden said last month that Exxon and others were making “more money than God” at a time when fuel prices have risen to record levels.

Earlier this month, Britain passed a one-off tax of 25% on North Sea oil and gas producers.

American parliamentarians have discussed a similar idea, although the chances of adoption in Congress are low.

A one-time tax does not provide “an incentive to increase production, which is really what the world needs today,” Exxon Chief Financial Officer Kathryn Mikells said in an interview with Reuters.

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Companies say they are just meeting consumer demand and that prices reflect global supply problems and a lack of investment.

World oil production has been limited by a slow return of oil to the market by the Organization of the Petroleum Exporting Countries and its allies, including Russia, and by labor and equipment shortages that are preventing faster supply growth in places such as the United States.

Earlier this year, Exxon doubled its share buyback program to $30 billion through 2022 and 2023.

Shell said it would buy back $6 billion of shares in the current quarter, while Chevron increased its annual buyback plans to a range of $10 billion to $15 billion, up from $5 billion to $10 billion. USD.

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