ExxonMobil and Chevron shatter profit records after global oil price surge

[onthedarkside]

 

Blockbuster earnings threaten political backlash as inflation rips through economies

 

ExxonMobil and Chevron smashed profit records in the second quarter as the surging energy prices that followed Russia’s invasion of Ukraine delivered a windfall for the US oil supermajors.

 

The huge earnings come as consumers reel from sky-high fuel costs that have helped drive inflation to levels not seen in decades across the US and Europe, threatening a political backlash against energy companies.

 

Exxon’s second-quarter net profit was $17.9bn, beating analysts’ estimates of $16.9bn, according to data compiled by S&P Capital IQ. The previous record quarterly profit for the company was $15.9bn in 2012, another year of elevated oil prices.

 

Chevron’s second-quarter profit was $11.6bn, also its highest quarterly profit and easily surpassing consensus estimates of $9.9bn.

 

(more)

 

https://www.ft.com/content/13f82093-1110-4c92-9fea-936067a5f29e

 

 

[Kinnock]

Blatant profiteering.

 

Demand should fall due to price hikes, so you'd expect profits to reduce due to lower revenues, but as profits are up, they've just used the tragedy in Ukraine to push prices up even more than the rise in oil prices.

 

A pox on both your houses..

[placeholder]

9 hours ago, Kinnock said:

Blatant profiteering.

 

Demand should fall due to price hikes, so you'd expect profits to reduce due to lower revenues, but as profits are up, they've just used the tragedy in Ukraine to push prices up even more than the rise in oil prices.

 

A pox on both your houses..

What I find interesting is that when the price of oil goes up, prices at the pump quickly follow suit. But when prices go down, there is a substantial lag time before prices at the pump decline.

[baboon]

9 hours ago, Kinnock said:

Blatant profiteering.

 

Demand should fall due to price hikes, so you'd expect profits to reduce due to lower revenues, but as profits are up, they've just used the tragedy in Ukraine to push prices up even more than the rise in oil prices.

 

A pox on both your houses..

High time countries should start thinking about Nationalisation.

[Bluespunk]

Windfall tax the <deleted> out of them. 

[pegman]

IT'S THE RUSSIANS!!! 

555!!!!!!!

 

The line in The Formula read by George C. Scott needs to be changed from "We are the Arabs" to "We are the Russians". Meanwhile the price per litre of gas in Russia is $.85. Any government that does not bring in price controls for fuel loses its legitimacy to govern in my mind. 

 

https://www.globalpetrolprices.com/gasoline_prices/

Edited July 30, 2022 by pegman

[gearbox]

On 7/29/2022 at 10:31 PM, Kinnock said:

Blatant profiteering.

 

Demand should fall due to price hikes, so you'd expect profits to reduce due to lower revenues, but as profits are up, they've just used the tragedy in Ukraine to push prices up even more than the rise in oil prices.

 

A pox on both your houses..

Why profiteering....this is how capitalism works. There is big demand for their products, and that's pushing up the prices, this is how the markets work.

 

A few years ago some of the big Australian gas companies were at the brink of default due to low petrol/gas prices. Some had to raise extra capital to stay afloat. The view from the public was "they took the risks, they should bear the consequences".  Now that the tables have turned, all the quasi capitalists became quasi communists and are demanding the companies share the profits.

[habanero]

56 minutes ago, gearbox said:

Why profiteering....this is how capitalism works. There is big demand for their products, and that's pushing up the prices, this is how the markets work.

 

A few years ago some of the big Australian gas companies were at the brink of default due to low petrol/gas prices. Some had to raise extra capital to stay afloat. The view from the public was "they took the risks, they should bear the consequences".  Now that the tables have turned, all the quasi capitalists became quasi communists and are demanding the companies share the profits.

The way to bring down prices, is to flood the market with oil.  But, with the U.S. out of the export business, there is no one to fill the void.

[Credo]

1 hour ago, habanero said:

The way to bring down prices, is to flood the market with oil.  But, with the U.S. out of the export business, there is no one to fill the void.

Probably should have been a little nicer to Iran and Venezuela.

 

[Kinnock]

3 hours ago, gearbox said:

Why profiteering....this is how capitalism works. There is big demand for their products, and that's pushing up the prices, this is how the markets work.

 

A few years ago some of the big Australian gas companies were at the brink of default due to low petrol/gas prices. Some had to raise extra capital to stay afloat. The view from the public was "they took the risks, they should bear the consequences".  Now that the tables have turned, all the quasi capitalists became quasi communists and are demanding the companies share the profits.

No ..... you have a business strategy based on your normal operating margin and growth plans.  External factors cause the price of your raw materials to rise, so you increase retail prices in proportion and your margin is maintained.  Or, if you're a responsible company, you reduce your margins to minimise the price increase for your customers.

 

But if you're OK with blatant profiteering, then you use the increase in oil costs to increases prices more than needed to maintain your margins, and so you achieve record profits.

 

That is classic profiteering, and as the cause is a war, it's also immoral.

 

I accept that nobody in the history of Thaivisa/Aseannow has ever admitted to being wrong - but in your heart you know the oil companies are in the wrong on this one.

[Kinnock]

BBC News - Ukraine war: UN chief Guterres slams oil and gas firms' 'grotesque greed'
https://www.bbc.co.uk/news/business-62415904