NEW YORK: US oil giants ExxonMobil and Chevron reported another quarter of heady profits Friday as both companies continued to direct large cash payments to shareholders.
Strong refining results offset the effect of lower crude prices in the first quarter compared with the year-ago period, lifting profits and enabling ExxonMobil to return $8.1 billion to shareholders and Chevron $6.6 billion in dividends and share repurchases.
"We're delivering strong financial results and increasing cash return to shareholders," said Chevron Executive Mike Wirth, pointing to a 65 per cent jump in shareholder repayments compared with the year-ago period.
The results extend a bountiful period for the US oil giants in the wake of a global energy market roiled by Russia's invasion of Ukraine. Both companies pointed to a hit from recent windfall profit taxes that deprived them of even bigger earnings.
Results in the 2022 period were lifted by spiking oil prices following Russia's invasion of Ukraine.
In the most recent period, crude prices traded in the $70-a-barrel range for most of the quarter.
While that's down from the spike in the 2022 period after Russia's invasion of Ukraine, crude prices remain at a fairly high level.
At ExxonMobil, first-quarter profits more than doubled to $11.4 billion, while revenues declined 4.3 per cent to $86.6 billion.
Results in the year-ago period were dented by $3.4 billion in one-time costs connected to ExxonMobil's withdrawal from the Sakhalin offshore oilfield following the invasion of Ukraine.
But while crude prices were down 23 per cent compared with the 2022 quarter, production volumes of oil and natural gas rose 4.1 per cent.
The oil giant's integrated model -- which makes it a consumer of crude at its network of petroleum refineries -- meant it also benefited from lower oil prices in ExxonMobil's energy products division.
Chief Executive Darren Woods said the company "is growing value by increasing production from our advantaged assets to meet global demand."
Woods, in an interview on CNBC, described current market conditions as "fairly mixed," noting that the industry is emerging from a seasonally moderate period as far as demand. - AFP
Oman Observer is now on the WhatsApp channel. Click here
