- Following the Russian invasion of Ukraine in February, oil prices rose in the first quarter of 2022.
- Shell’s adjusted earnings, for example, rose to $ 9.1 billion, while Exxon Mobil reported a profit of $ 5.48 billion.
- Rising prices have boosted the profits of large energy companies, further contributing to global inflation and the cost of living crisis.
As households around the world struggle with rising energy bills, some of the world’s leading oil giants have reported record profits in the first three months of this year.
Profits for Exxon Mobil, Shell and others have also grown by billions despite significant costs of leaving business and / or investing in Russia amid the war in Ukraine.
After Russia invaded Ukraine in February, oil prices rose in the first quarter of 2022 – as countries that rely heavily on Russia for energy tried to find alternative fuel sources amid uncertainty.
The benchmark for world oil prices, crude Brent, averaged $ 102.23 a barrel in the first quarter – 67% more than in the same period last year, according to the Associated Press. In the United States, for example, drivers have consequently found rising gas prices at the pump.
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Home heating bills and electricity prices have also inflated around the world – as natural gas prices have risen from $ 3.50 per million British thermal units to around $ 5.60.
High oil and gas prices have boosted the profits of large energy companies, further contributing to global inflation and the cost of living crisis.
The net profit margin of the S&P 500, which includes energy giants such as Chevron and Exxon Mobil, was 12.3% in the first quarter based on estimates and revenues reported so far, according to FactSet. That’s a 13.1% drop from the peak in the second quarter of last year, but above the pre-COVID-19 level of about 11%.
“Profit margins should be declining,” Lindsay Owens, executive director of Groundwork Collaborative, a progressive economic policy research group, told USA TODAY.
Instead, she noted, “they’re actually growing.”
Here is a breakdown of the profits and earnings that some of the world’s oil giants made in the first three months of 2022:
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Shell’s earnings rose to $ 9.1 billion
In the first quarter, Shell’s adjusted earnings rose to $ 9.1 billion from $ 3.2 billion in the same period last year. Net income rose to $ 7.3 billion from $ 5.8 billion in the first quarter of last year.
Shell said $ 3.9 billion will also be needed to cover the cost of outbound investments in Russia, which the London energy giant has pledged to do after the invasion of Ukraine.
►Shell earnings:Shell reports record profit of $ 9.1 billion as oil prices rose in the first quarter
BP recorded a profit of $ 6.2 billion
BP made its biggest quarterly profit in more than a decade – the British energy company said on Tuesday that its underlying replacement cost had risen to $ 6.2 billion in the first three months of this year, more than doubling $ 2.6 billion from the same period last year.
BP PLC also said its net loss in the first quarter was $ 23 billion, after writing off nearly 20% of its stake in Russian oil producer Rosneft in response to the war in Ukraine.
Recent reports of BP and Shell’s profits have contributed to calls in Britain for the government to introduce a tax on unexpected earnings by energy companies, hoping to help consumers struggling with rising energy prices. Prime Minister Boris Johnson dismissed the idea, saying the tax would cut investment in Britain during efforts to diversify the country’s energy industry.
“The British government’s refusal to tax the super-profits of energy companies is completely unforgivable when people are too scared to heat their homes,” Liberal Democrat leader Ed Davey told the Associated Press.
Exxon doubled its profit from last year to $ 5.48 billion
In late April, Exxon Mobil reported $ 5.48 billion in profits during the first quarter of 2022 – also more than doubling its profits compared to the same period last year. The Irving, Texas-based company had revenue of $ 90.5 billion, far exceeding $ 59.15 billion in revenue in the same quarter of 2021.
But after leaving Russian operations because of the war, Exxon also suffered a significant blow, earning $ 3.4 billion.
Exxon profit:As gas prices rose, Exxon Mobil doubled its profit from last year to $ 5.48 billion
Chevron reports $ 6.26 billion in profits
Also in late April, Chevron reported a quarterly profit of $ 6.26 billion, four times the $ 1.4 billion earnings in the first quarter of last year. Revenue from San Ramon, California, grew 41 percent to $ 54.37 billion.
Sinopec totals $ 3.45 billion in net profit
According to Reuters, China Petroleum & Chemical Corp., or Sinopec, reported 22.61 billion yuan ($ 3.45 billion) in net profit according to Chinese accounting standards for the first quarter of 2022, compared to 17.93 billion yuan (2.69 billion). billion dollars) last year.
Sinopec also recorded a 25% increase in net profit.
Adjusted earnings of Phillips 66 of $ 595 million
For the first quarter, Phillips 66 reported first-quarter earnings of $ 582 million, with adjusted earnings of $ 595 million.
In 2021, Phillips 66 reported a first-quarter loss of $ 654 million, with an adjusted loss of $ 509 million.
Contributed by: Associated Press, Paul Davidson, USA TODAY.
