They turned the crisis into an opportunity: Record profits for oil companies

The profits of the oil giants soared due to the international energy crisis. In the balance sheets for the third quarter announced yesterday and today by the companies, it was seen that their profits doubled compared to the previous year.

US oil giant ExxonMobil tripled its third-quarter profit, breaking a record, while Chevron increased its third-quarter profit by 84 percent year on year. Total’s third-quarter profit doubled to $9.9 billion year-on-year, while Shell’s profit doubled year-on-year to $9.45 billion in the same period.

Although the earnings of the companies that announced their balance sheet are to the liking of their shareholders, politicians accuse the energy sector of deepening inflation.

HERE ARE THE PROFITS OF THE GIANT COMPANIES

While ExxonMobil posted a $19.7 billion profit in the third quarter, this figure materialized at $6.8 billion in the same period a year earlier. The company also nearly tripled its earnings per share to $4.68.

The Texas-based company attributed the results to its strong performance and tight cost controls, as well as strong commodity markets.

French company Total also posted earnings above expectations, benefiting from rising commodity prices. The French company’s third-quarter profit doubled year-over-year to $9.9 billion. Total achieved this record profit despite the loss it suffered from its partnerships in Russia.

UK-based oil company Shell, on the other hand, posted a third-quarter profit of $9.45 billion, falling from the previous quarter’s record level on weak refinery and gas trade. However, the company doubled its profit compared to last year.

Chevron’s third-quarter net income was $11.2 billion, up 84 percent from last year. Exxon and Chevron’s earnings dwarfed Wall Street’s expectations.

Despite the general fall in the stock markets, the oil companies; They were the best performing companies in the US stock market this year, with higher dividends, share buybacks and higher earnings.

THE ENERGY CRISIS CAUSES THE OIL GIANTS

Brent crude oil prices rose to the $130 per barrel level in March due to the Ukraine-Russia war, and then returned to the $90 level. On the other hand, the continued shortage of supply and OPEC+’s decision to cut supply continued to push prices up.

Oil prices in the US reached $5 per gallon (1 gallon = 3.78 liters) earlier this year due to rising prices. Although prices dropped to $3.76 with the market downturn, they still remained quite high compared to earlier in the year.

THE WHITE HOUSE AND THE COMPANIES CAME AGAINST

Rising gasoline prices fueled inflation by increasing the cost of many products, especially logistics costs, and this has brought the oil industry and the White House face to face in recent months.

Biden, who put gas tax cuts on the agenda to lower prices, accused oil companies of taking advantage of supply shortages to boost profits. Biden said: “Exxon has earned a lot of money from God this year. “American oil companies used their profits not to drill more, but to buy back shares,” he said.