- S. supermajors ExxonMobil and Chevron both reported their highest-ever quarterly profits on Friday.
- Higher oil and gas prices, the highest refining margins in years, increased production, and aggressive cost control all contributed to the record-breaking profits at Exxon.
- Chevron also reported record-breaking profits, announcing an increase in share buybacks.
U.S. supermajors ExxonMobil and Chevron both reported their highest-ever quarterly profits on Friday as oil and gas prices rallied and refining margins jumped to multi-year highs in the second quarter.
ExxonMobil (NYSE: XOM) beat analyst expectations and booked second-quarter earnings of $17.9 billion, or $4.21 per share assuming dilution. This is nearly quadruple the $4.69 billion earnings for the second quarter last year, and more than triple the earnings from the first quarter of this year. Exxon’s per share earnings easily beat the analyst consensus of $3.84.
Higher oil and gas prices, the highest refining margins in years, increased production, and aggressive cost control all contributed to the record-breaking profits at Exxon, which beat its previous quarterly earnings record from 2012 and the quarterly profits from 2008, when Brent prices hit a record $147 per barrel.
Second-quarter earnings were “driven by a tight supply/demand balance for oil, natural gas, and refined products, which have increased both natural gas realizations and refining margins well above the 10-year range,” Exxon said.
The U.S. other supermajor, Chevron (NYSE: CVX), also posted record earnings beating analyst forecasts, thanks to high oil and gas prices and tight fuel markets driving multi-year high refining margins.
Chevron booked adjusted earnings of $11.4 billion, or $5.82 per share, for the second quarter, up from $3.3 billion earnings, or $1.71 per share, for the same period of 2021. The analyst consensus was for $5.08 EPS for this past quarter.
Chevron increased the top end of its annual share repurchase guidance range to $15 billion, up from the $10 billion guidance from March.
Following the results release, Chevron stock was up by more than 3.5% pre-market on Friday, while Exxon was advancing by 2.5%.
The record earnings from the U.S. supermajors add to similarly strong earnings from the European majors, each of which reported much higher profits as commodity prices rallied.