Exxon Flags Huge Profit Jump While Lawmakers Target Dividends

by Msnbctv news staff


(Bloomberg) — Exxon Mobil Corp. signaled its highest revenue since 2008 as Russia’s conflict in Ukraine upended world commodity markets.

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Exxon’s announcement that first-quarter outcomes could have reached virtually $11 billion augurs booming earnings throughout the oil trade as commerce sanctions, transport disruptions and surging demand pressure provide traces.

The windfall doesn’t come with out dangers, nevertheless. Key Democrats within the U.S. Home of Representatives demanded Exxon and friends Chevron Corp., Shell Plc and BP Plc instantly halt dividends and share buybacks till the conflict’s conclusion, and scolded them for “profiteering off the disaster in Ukraine.”

Political leaders are underneath strain to alleviate sky-high power costs and the specter of shortages. U.S. President Joe Biden final week pleaded with the trade to reinvest earnings in new wells to assist plug the provision hole from shunned Russian crude. On the identical time, he warned of punishing monetary penalties for firms slow-walking initiatives involving federally owned oil prospects.

The lawmakers faulted Exxon and the opposite three oil explorers of collectively spending $44 billion on buybacks and payouts final yr and planning to shell out one other $32 billion in 2022, in response to a letter was signed by Home Oversight Committee Chair Carolyn B. Maloney and Surroundings Subcommittee Chair Ro Khanna.

Exxon stated Monday that first-quarter outcomes could have been as a lot as $2 billion larger than earnings through the ultimate three months of 2021, when the corporate raked in $8.8 billion, in response to a submitting.

Crude’s Rally

Surging oil costs have been the principle driver, with pure fuel and fatter refining margins additionally contributing. Worldwide crude futures touched a 14-year excessive of just about $140 a barrel through the quarter.

Individually, Exxon formally authorized the $10 billion Yellowtail growth off the coast of Guyana after receiving authorities and regulatory approvals. The mission is the fourth and largest in an space generally known as the Stabroek Block, and is anticipated to pump about 250,000 barrels a day beginning in 2025.

Exxon additionally disclosed that exiting the Sakhalin-1 oil growth in Russia’s Far East could set off a writedown of as a lot as $4 billion. The corporate not too long ago pledged to give up Russia resulting from worldwide sanctions and what the corporate’s Chief Government Officer Darren Woods described because the nation’s “useless destruction” in Ukraine.

Exxon shares have been little modified at $82.99 at 2:57 p.m. in New York.

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