According to a regulatory filing, Exxon Mobil Corp indicated on Friday that soaring margins from fuel and oil sales could deliver a record quarterly profit.
This year, oil has sold for more than $105 per barrel, with gasoline selling for around $5 per gallon in the United States. The massive profits are likely to spark new proposals for windfall profit taxes.
The largest US oil producer forecasted a $7.4 billion sequential improvement in operational earnings over the first quarter. Exxon earned $8.8 billion in the first quarter, excluding a writedown in Russia.
According to the filing, the company might profit more than $16 billion in the second quarter. In 2012, the company's highest quarterly profit was $15.9 billion.
According to the document, Exxon anticipates that higher oil and gas prices will boost earnings by $2.9 billion. Profit margins from gasoline and diesel sales will add $4.5 billion to operating profits.
"High energy prices are largely a result of underinvestment by many in the energy industry over the last several years and especially during the pandemic," Exxon said in a statement on the profit gains.
Analysts polled by IBES Refinitiv expect a profit per share of $2.99, up from $1.10 in the same quarter last year. According to a breakdown of factors influencing the period issued late Friday, official results for the time will be released on July 29.
Exxon's revenues prompted US President Joe Biden to warn last month that the business and other oil companies were profiting from a global oil supply deficit. He said that Exxon was making "more money than God" after reporting its highest quarterly profit in seven years.
In response to the president's remarks, the business stated that it is investing more than any other producer in the country to boost oil and natural gas production, especially in the Permian, the country's largest.
Exxon's record earnings, according to U.S. Representative Ro Khanna, support his call for Congress to enact a windfall tax on Big Oil.
"Big Oil companies should be providing relief to their customers, not pouring billions into stock buybacks to enrich their investors," he said in a statement.
On Friday, Exxon's stock rose 2.2 per cent to $87.55.
Exxon, which lost more than $22 billion in 2020, has been using the extra income from higher energy prices sales to pay down debt and increase shareholder distributions. It intends to repurchase up to $30 billion in stock through 2023.
Despite losses during the pandemic, Exxon continued to invest in increased production and plans to raise Permian output by 25 per cent in 2022, according to a company representative.
The second-quarter earnings release will be the first since Exxon decided to report results by four business units, providing a more precise breakdown of its petrochemical activities.
Margins in its chemical and specialty products units were flat in the second quarter compared to the first, according to the snapshot.
The business predicted that leaving Russia would reduce oil and gas profits by around $150 million in the first quarter. Earlier this year, Exxon wrote down $3.4 billion in Russia assets.
Exxon also indicated a $300 million contribution from asset sales in the quarter.
(Source:www.usnews.com)
This year, oil has sold for more than $105 per barrel, with gasoline selling for around $5 per gallon in the United States. The massive profits are likely to spark new proposals for windfall profit taxes.
The largest US oil producer forecasted a $7.4 billion sequential improvement in operational earnings over the first quarter. Exxon earned $8.8 billion in the first quarter, excluding a writedown in Russia.
According to the filing, the company might profit more than $16 billion in the second quarter. In 2012, the company's highest quarterly profit was $15.9 billion.
According to the document, Exxon anticipates that higher oil and gas prices will boost earnings by $2.9 billion. Profit margins from gasoline and diesel sales will add $4.5 billion to operating profits.
"High energy prices are largely a result of underinvestment by many in the energy industry over the last several years and especially during the pandemic," Exxon said in a statement on the profit gains.
Analysts polled by IBES Refinitiv expect a profit per share of $2.99, up from $1.10 in the same quarter last year. According to a breakdown of factors influencing the period issued late Friday, official results for the time will be released on July 29.
Exxon's revenues prompted US President Joe Biden to warn last month that the business and other oil companies were profiting from a global oil supply deficit. He said that Exxon was making "more money than God" after reporting its highest quarterly profit in seven years.
In response to the president's remarks, the business stated that it is investing more than any other producer in the country to boost oil and natural gas production, especially in the Permian, the country's largest.
Exxon's record earnings, according to U.S. Representative Ro Khanna, support his call for Congress to enact a windfall tax on Big Oil.
"Big Oil companies should be providing relief to their customers, not pouring billions into stock buybacks to enrich their investors," he said in a statement.
On Friday, Exxon's stock rose 2.2 per cent to $87.55.
Exxon, which lost more than $22 billion in 2020, has been using the extra income from higher energy prices sales to pay down debt and increase shareholder distributions. It intends to repurchase up to $30 billion in stock through 2023.
Despite losses during the pandemic, Exxon continued to invest in increased production and plans to raise Permian output by 25 per cent in 2022, according to a company representative.
The second-quarter earnings release will be the first since Exxon decided to report results by four business units, providing a more precise breakdown of its petrochemical activities.
Margins in its chemical and specialty products units were flat in the second quarter compared to the first, according to the snapshot.
The business predicted that leaving Russia would reduce oil and gas profits by around $150 million in the first quarter. Earlier this year, Exxon wrote down $3.4 billion in Russia assets.
Exxon also indicated a $300 million contribution from asset sales in the quarter.
(Source:www.usnews.com)
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