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.



Saudi Arabia Revises Q1 Economic Growth Estimate Up to 3.4%

A general view of Riyadh, Saudi Arabia. (AFP)
A general view of Riyadh, Saudi Arabia. (AFP)
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Saudi Arabia Revises Q1 Economic Growth Estimate Up to 3.4%

A general view of Riyadh, Saudi Arabia. (AFP)
A general view of Riyadh, Saudi Arabia. (AFP)

Saudi Arabia’s General Authority for Statistics has revised its annual economic growth figures for the Kingdom for the first quarter of 2025 to 3.4%, up from a preliminary estimate of 2.7% released in May, underscoring the resilience of non-oil sectors in driving economic momentum.

Seasonally adjusted data showed real gross domestic product (GDP) grew 1.1% in the first quarter compared to the final three months of 2024, according to the updated figures.

The figures showed non-oil activities as the true driver behind Saudi Arabia’s economic expansion.

Non-oil sectors surged 4.9% year-on-year, up from 4.2% in the May preliminary reading, and grew 1.0% quarter-on-quarter, contributing 2.8 percentage points to overall real GDP growth.

This robust growth reflects the impact of massive government investments in infrastructure projects and development initiatives, alongside efforts to boost the private sector.

In contrast, oil sector activities saw a slight decline of 0.5% year-on-year and 1.2% quarter-on-quarter, primarily due to the Kingdom’s voluntary production cuts.

Despite this contraction, the negative impact on overall growth remained limited to just 0.1 percentage points, underscoring the economy’s ability to offset oil sector weakness through other areas.

Government activities also recorded solid growth, rising 3.2% year-on-year and 5.5% compared to the previous quarter.

Most non-oil economic activities recorded robust positive growth rates in the first quarter of 2025.

Wholesale and retail trade, restaurants, and hotels posted the highest growth at 8.4% year-on-year, reflecting a booming tourism and entertainment sector alongside rising private consumer spending.

Transport, storage, and communications grew by 6.0% year-on-year, highlighting advancements in the Kingdom’s logistics and digital infrastructure.

Financial services, insurance, and business services expanded 5.5% year-on-year, indicating maturation of the financial and service sectors.

The data underscore the pivotal role of government investments and consumer spending in sustaining this growth. Gross fixed capital formation rose 8.5% annually, signaling continued funding for major projects and urban development.

Meanwhile, government final consumption expenditure increased by 5.2%, with private final consumption up 4.5% year-on-year.

Non-oil exports, including re-exports, surged 13.4% year-on-year in Q1 2025, while oil exports declined 8.4% over the same period, according to official figures released in May.

These revised estimates come amid efforts by the General Authority for Statistics to align closely with international standards and enhance data quality.

The authority undertook a comprehensive update of GDP estimates, applying the global moving-average methodology and collecting detailed 2023 data through expanded statistical surveys, ensuring accuracy and reliability.

This strong non-oil-driven growth highlights Saudi Arabia’s economic resilience and adaptability in a changing global landscape, reinforcing its steady path toward the ambitious goals of Vision 2030.

In its latest World Economic Outlook report, the International Monetary Fund (IMF) forecast Saudi Arabia’s GDP growth at 3.0% for 2025, a downward revision from its January estimate of 3.3%. The IMF also cut its 2026 growth forecast by 0.4 percentage points to 3.7%.

Jihad Azour, IMF Director for the Middle East and Central Asia, told Asharq Al-Awsat last month that Saudi Arabia’s economic resilience enables it to weather fluctuations in global oil prices.

He noted the Kingdom’s substantial financial reserves provide a strong buffer against external shocks. These reserves, combined with ongoing structural reforms under Vision 2030, have significantly strengthened Saudi Arabia’s capacity to adapt.

Azour added that reforms have not only bolstered economic resilience but also effectively diversified income sources and increased the contribution of non-oil sectors to GDP.

This shift toward developing promising sectors reduces reliance on oil revenues and fosters sustainable new economic opportunities.