US Oil Giants ExxonMobil and Chevron Achieve Record Profits Amid High Oil Prices, Quadrupling Earnings

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] ExxonMobil and Chevron, the top two oil companies in the United States, posted record-breaking profits due to high oil prices.

On the 29th (local time), ExxonMobil announced that its net profit for the second quarter of this year reached $17.85 billion (approximately 23.3 trillion KRW), marking the highest quarterly net profit ever. This is nearly four times the $4.69 billion recorded a year ago. Quarterly revenue reached $115.6 billion (approximately 151.1 trillion KRW), nearly doubling compared to the same period last year.

Chevron also announced on the same day that its second-quarter net profit hit a record $11.62 billion (approximately 15.2 trillion KRW). This figure is also close to four times the $3.08 billion from the same period last year. Second-quarter revenue surged from $36 billion last year to $65 billion (approximately 85 trillion KRW) this year.

The earnings of both companies exceeded Wall Street expectations. According to CNBC, ExxonMobil’s earnings per share were $4.14, surpassing the forecast of $3.74, and Chevron’s earnings per share also exceeded expectations, recording $5.82 compared to the forecast of $5.10.

This profit boom is analyzed as a result of the sharp rise in international crude oil and natural gas prices following Russia’s invasion of Ukraine at the end of February. Due to Western sanctions reducing the supply of Russian crude oil, the average price of West Texas Intermediate (WTI) crude oil in the second quarter soared 64% year-on-year to $109 per barrel. Consequently, the average gasoline consumer price in the U.S. also continued its upward trend, surpassing $5 per gallon on the 14th of last month.

This is also the background behind U.S. President Joe Biden’s public criticism last month, stating that "Exxon is making more money than God." President Biden pointed out, "It is unacceptable for refining profit margins, which far exceed the average during a time of war, to be directly passed on to American households." Crude oil prices have fallen below $100 per barrel this month amid recession concerns.

Meanwhile, on the New York Stock Exchange today, ExxonMobil’s stock price was trading up 4.53% compared to the previous session. Chevron’s stock price rose more than 8%.

This content was produced with the assistance of AI translation services.