ExxonMobil, a US-based oil company, reported a profit that was double that of the previous year
The US-based oil-producing company, ExxonMobil, reported more than double this year’s profit in just three months. The company said the reason behind this growth is the increased demand for gas and oil.
The company added that the “cost-cutting mechanism” also contributed to a record $11.4 billion (£9.1 billion) in the first quarter of the year, $5.5 billion more than the previous year.
The increase occurred in spite of declining oil prices and a $200 million loss due to windfall taxes the company paid in Europe.
Chevron, a rival US oil company, also announced higher profits.
Between January and March, revenue increased by 5% to almost $6.6 billion. Additionally, it paid a windfall tax, or “energy profits levy,” of $130 million in the UK.
The most recent results from Shell and BP will be released next week.
Exxon, like other significant energy corporations, has come under fire for the amount of money it has given back to shareholders as a result of the high price of oil and gas.
According to ExxonMobil, the increase in profits included a $3.4 billion after-tax cut to leave Russia.
She cited the launch of new offshore developments and refining facilities, which significantly contributed to earnings that were higher than planned.
Exxon is currently involved in a legal dispute with the EU; it is suing the EU in an effort to stop their proposed windfall tax on oil companies.
It has claimed that Brussels has overstepped its legal bounds, called the action “counter-productive,” and argued with other industry participants that the levy will deter investment.
Exxon’s performance has exceeded expectations, according to Peter McNally, an industry expert at the Third Bridge research group. The company has produced the most oil and gas since 2019.
Although Canada’s soaring oil production was a major factor, he noted that the drop in US natural gas prices had a negative impact on profitability.
For the fourth straight quarter, the company’s refining division delivered earnings of more than $4 billion, according to Mr. McNally, who called it a “star performer.”