Big Oil Eyes Record Profits but Keeps Spending in Check
Saudi Crude Exports Hit Five-Month High as Production Falls to Record Low Colombia’s largely untapped critical mineral… What I Cover Irina Slav has been writing about global energy markets since 2007, covering the oil and gas industry, energy security, commodities, and the… Oil supermajors have been raking it in since the war in the Middle East began.
They are now set to report another robust quarter, even as some jurisdictions where they operate plan to slap windfall taxes on them.
The question now is what Big Oil will do with these profits.
The answer: it probably won’t be a spending spree.
If the second quarter is any indication—and it is—oil and gas majors are having a really strong year.
Out of all S&P 500 sectors, Energybookedannual growth of 128.2% on the year in the second quarter, with the refining subsector recording triple-digit earnings growth and upstream players also benefiting from the war premium on oil resulting from the squeeze on Middle Eastern supply.
The third quarter is not going to be different.
Reuters this weekpredictedthat Shell could report an 84% increase in earnings from last year, with that number at 155% for BP, 111% for TotalEnergies, and 101% for Exxon.
Chevron is seen booking the biggest annual profit increase, at 158% for the third quarter of the year, based on LSEG data on the company’s previous reports and expected financial results.
BP’s profit for the third quarter is seen at $5.6 billion, and that’s the lowest of all.
Shell’s profits are estimated at $10 billion, TotalEnergies’ result is seen at $8.4 billion, and Chevron is expected to report profits of $9.3 billion.
Exxon, the biggest of them all, is far ahead with a projected third-quarter profit of $16.2 billion.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
Comments
Post a Comment