Exxon’s sales shrank by around four percent to $86.6 billion.
(Photo: Reuters)
new York The big US oil companies Exxon Mobil and Chevron are posting record profits despite falling oil prices. Exxon posted the best first-quarter earnings in the company’s history with a profit of $11.4 billion. Chevron increased its profits by five percent to $6.6 billion. And this despite the fact that sales at both companies have fallen significantly.
Exxon stock hit a record high after the results, while Chevron fell slightly in value. The two US oil companies already presented record results last year as they benefited from the high energy prices caused by the Ukraine war. They therefore also had to listen to allegations from politicians.
Most recently, however, the oil price had fallen again significantly – and is now a third below the highs of the past year. Nevertheless, Exxon Mobil and Chevron, which, unlike their European competitors, continue to rely heavily on fossil fuels, have been able to operate very profitably. This means that both groups are sitting on comfortable cash cushions.
When asked if he now plans to make acquisitions, Exxon CEO Darren Woods told investors that it’s good to have “a buffer as you get closer to the end of a cycle.” In fact, the US oil companies have become more cautious with investments in recent years, after years of billions in losses.
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Exxon benefited from cost reductions and efficiency gains, it said in the quarterly report. The large gain “reflects the changes we’ve made,” Woods said. A year ago, for example, high depreciation in Russia weighed on the result. At rival Chevron, sales fell by seven percent in the first quarter. Nevertheless, profits increased by five percent to almost 6.6 billion dollars.
Due to the existing focus on oil, US companies have recently come under pressure from investors. The European competition has at least initiated the green conversion. At Exxon, activist investor “Engine No 1” has pushed for a rethink with the support of large institutional investors and even secured a seat on the board of directors. Engine No 1 is pushing for a stronger focus on renewable energy.
With agency material.
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