Exxon, Chevron Post Record Revenues

An oil field in the United States (Reuters)
An oil field in the United States (Reuters)
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Exxon, Chevron Post Record Revenues

An oil field in the United States (Reuters)
An oil field in the United States (Reuters)

The two largest US oil companies, Exxon Mobil Corp and Chevron Corp, posted record revenue in Q2 2022 on Friday.

With crude surging above $100 a barrel shortly after the Russian invasion on Ukraine, and refining margins climbing due to tight plant capacity, ExxonMobil reported $17.9 billion in profits and Chevron $11.6 billion in the just-finished second quarter.

The results come on the heels of similarly jaw-dropping figures from European petroleum heavyweights, with Shell reporting $18 billion in profits, Total Energies $5.7 billion and Eni $3.8 billion.

Crude prices traded between $95 and $120 a barrel during the quarter, as the war and the wave of sanctions on Moscow lifted the oil market back to levels last seen in 2008.

On Friday, both companies reported higher oil and natural gas volumes in the United States, with ExxonMobil boosted by an increased 130,000 barrels of oil-equivalent in the Permian Basin in Texas and New Mexico, and Chevron notching a three percent rise in US volumes.

ExxonMobil plans to add 250,000 barrels per day of refining capacity at its Beaumont, Texas plant in the first quarter of 2023, representing “the industry's largest single capacity addition in the US since 2012,” ExxonMobil Chief Executive Darren Woods said in a news release.

Both companies reported big increases in revenues, with Exxon Mobil's jumping 71% to $115.7 billion and Chevron 83% to $69 billion.

This rise is considered one of the main factors behind the global inflation that hit unprecedented levels for decades in the United States and Europe.

Inflation is already changing where Americans go and what they eat. It's also changing the way they consume energy. Inflation in Europe has also been surging, including soaring costs for energy.

The two companies, which suffered significant financial losses early in the COVID-19 pandemic as petroleum demand tanked, have not used the mountains of cash from higher prices to significantly lift capital spending, which remains below the level prior to the pandemic.

Instead, the companies have been steering funds to shareholders. ExxonMobil paid out $7.6 billion in distributions during the quarter, while Chevron lifted the top end of its annual share repurchase range to $15 billion from $10 billion.

Shares of ExxonMobil jumped 4.1% to $96.39 in trading near midday, while Chevron leaped 8.5% higher to $163.19.

The ensuing surge in US gasoline prices to an all-time high in mid-June has squeezed American families and pressured President Joe Biden, who has had a fractious relationship with ExxonMobil and Chevron and the oil industry more generally.

In June, Biden ripped the industry for spending excess cash on share buybacks instead of significantly boosting capital spending.



IMF Trims 2025 Middle East, North Africa Growth Forecast

Jihad Azour, Director of International Monetary Fund Middle East and Central Asia Department, speaks during a press conference at the 2025 annual IMF/World Bank Spring Meetings in Washington, D.C., US, April 24, 2025. REUTERS/Elizabeth Frantz
Jihad Azour, Director of International Monetary Fund Middle East and Central Asia Department, speaks during a press conference at the 2025 annual IMF/World Bank Spring Meetings in Washington, D.C., US, April 24, 2025. REUTERS/Elizabeth Frantz
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IMF Trims 2025 Middle East, North Africa Growth Forecast

Jihad Azour, Director of International Monetary Fund Middle East and Central Asia Department, speaks during a press conference at the 2025 annual IMF/World Bank Spring Meetings in Washington, D.C., US, April 24, 2025. REUTERS/Elizabeth Frantz
Jihad Azour, Director of International Monetary Fund Middle East and Central Asia Department, speaks during a press conference at the 2025 annual IMF/World Bank Spring Meetings in Washington, D.C., US, April 24, 2025. REUTERS/Elizabeth Frantz

The International Monetary Fund said on Thursday it now expects Middle East and North Africa economies to grow by just 2.6% in 2025 as uncertainties stemming from a global trade war and weaker oil prices weigh on the region.
The fresh projection marked a sharp downgrade from its October projection of 4% growth and comes as the region grapples with geopolitical tensions, softer external demand and oil market volatility.
"Uncertainty could impact the real economy, consumption, investment... all these elements led to a softening of our projections," Jihad Azour, the IMF's director for the Middle East and Central Asia department, told Reuters in an interview.
"The direct impact of the tariff measures is limited because the integration in terms of trade between the region and the US is limited."
"The ongoing conflicts in the MENA region have inflicted profound humanitarian costs and left deep economic scars," the IMF said in the report, adding that the impact has been severe for the region's oil importing economies.
The MENA non-oil importers are now expected to see real GDP growth of 3.4% in 2025, versus an earlier forecast of 3.6%.

Growth among non-Gulf Cooperation Council oil exporters is expected to slow by one percentage point in 2025 - a sharp downward revision - before staging a modest recovery in 2026.
On the other hand, GCC economies are projected to strengthen, though at a slower pace than anticipated in October.
IMF projects GCC's GDP growth for 2025 at 3%, down from its October forecast of a 4.2% increase.