Super profits achieved in spite of falling oil prices

Oil giant, ExxonMobil’s chalked up record profits for the first quarter of 2023, which more than doubled.

The record profit of US$11.4 billion (£9.1 billion) was helped by the increased demand for oil and gas. The US energy firm says cost-cutting measures also contributed to its record first-quarter profits, up from $5.5 billion a year earlier.

The jump came despite falling oil prices and a US$200 million hit from windfall taxes the company paid in Europe. Rival US oil firm, Chevron also reported an increase in its profits making nearly US$6.6 billion between January and March.

This is up 5% from the same time a year ago. The company also paid a $130 million “energy profits levy” or windfall tax in the United Kingdom.

Exxon criticised for shareholder returns

Next week Shell and British Petroleum are both set to report their latest results. Like other big energy companies, Exxon has faced criticism about how much it has returned to shareholders off the back of high oil and gas prices.

Exxon shareholders would receive US $8.1 billion including dividends and US$375 million in share buybacks. ExxonMobil reports that the rise in profits included a US$3.4 billion after-tax reduction to exit Russia.

“We delivered a first-quarter record despite the fact that energy prices and refining margins are softening a bit,” chief financial officer Kathryn Mikells told Reuters.